Big Blue 'bribery' case sees top exec leave

IBM has replaced the head honcho for its South Korean operations, following a high-profile bribery scandal last month.

In January, Korean authorities indicted 48 government officials and executives, mostly from IBM and affiliated companies such as LG IBM PC - a joint venture between IBM and Korean firm LG Electronics - for rigging public sector computer contracts.

According to the Seoul District Prosecutor's Office, IBM Korea allegedly amassed a slush fund worth almost 3bn won ($2.5bn) which was used to pay off government officials. Big Blue has since denied the existence of this fund and said it has fired the employees in question.

An IBM Asia-Pacific spokesperson told CNETAsia it has named Tony Romero, a 23-year veteran with the company, as the new head for Korea.

Romero was previously the general manager of IBM ASEAN and South Asia. He also served as president for IBM Argentina between 1997 and 1999.

Romero takes over from former IBM Korea head, Chae-Chol Shin, who was appointed as the country's general manager in 1996. IBM said Shin made a "personal decision to retire" after 31 years with the company.

ZDNet Korea's Yong-Young Kim contributed to the story.