Samsung chief to answer questions over corruption allegations

Samsung chief to answer questions over corruption allegations

Posted on : 2008-04-04 11:41 KST Modified on : 2019-10-19 20:29 KST

Samsung Group Chairman Lee Kun-hee was to appear at a special prosecutor's office later Friday to be questioned about allegations that the country's largest conglomerate created slush funds and bribed public officials.

The planned interrogation of Lee is the first of its kind since 1995 when he was among a group of corporate leaders summoned for questioning over suspicions that they bribed politicians a decade earlier.

Investigators are trying to determine whether the group stashed slush funds under borrowed-name accounts; lobbied government officials, judges and prosecutors; and whether Lee played a role in the 1996 murky transfer of control of the group from him to his son, Jae-yong. All the allegations were made last year by a lawyer who had worked for Samsung.

The investigators planned to probe "a broad range of allegations against Chairman Lee" and "may summon him again," Yun Jung-sok, spokesman for special prosecutor Cho Joon-woong, told reporters on Thursday.

Samsung Group confirmed that Lee will appear at 2 p.m. at the special prosecutor's office as requested.

The move against the country's richest man came as the high-profile probe was nearing its conclusion. His wife, Hong Ra-hee, was questioned for the first time on Wednesday over her alleged use of some Samsung slush funds, following interrogations of their son, Jae-yong, and Hong's brother, Hong Seok-hyun, last month.

All the inquiries will determine whether Lee will be indicted.

Last year, two Samsung executives were found guilty of illegally facilitating the wealth transfer, but Lee and his son were not held accountable. The only indictment against Lee was in 1995 when he, along with several other conglomerate heads, was found guilty of bribing former President Roh Tae-woo.

The independent probe kicked off in January after the former Samsung lawyer, Kim Yong-chul, raised a slew of corruption allegations against the conglomerate and the National Assembly passed a bill to investigate Samsung.

The whistle-blower alleged that Samsung created 200 billion won ($202 million) worth of slush funds and routinely bribed public officials.

Samsung has denied setting up any slush funds. But it later acknowledged having borrowed-name accounts.

After questioning Lee, the special prosecutor's team will have to decide whether to extend, for a second time, its mandate, which expires on April 8, to continue the probe until April 23.

South Koreans are torn between hopes that Samsung will enhance its transparency and concerns about damage to its global reputation. Samsung accounts for nearly a quarter of South Korea's exports and gross national product. Among its 59 affiliates are Samsung Electronics Co., the world's biggest memory chip maker, and Samsung Heavy Industries, the world's No. 2 shipbuilder.

SEOUL, April 4 (Yonhap)

Most viewed articles