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Prosecutors carry boxes of documents seized from Samsung Electronics headquarters in Seoul’s Seocho district

Questions are being raised about the reasons behind a suspected additional donation of 3.19 million euros (4.3 billion won, US$3.38 million) to Choi Sun-sil by the Samsung Group.

The revelations of multiple large secret contributions by Samsung - as well as factually inaccurate explanations to cover them up - are feeding speculation that the payments were intended as bribes.

The latest revelations bring to the total amount of “support” provided directly to Choi and daughter Jung Yu-ra by Samsung to 8 billion won (US$6.8 million). Factoring in the 20.4 billion won (US$17.4 million) in contributions to the Mir and K-Sports Foundations and the 1.6 billion won (US$1.4 million) provided to Choi’s nephew Jang Si-ho brings the total given by Samsung to Choi herself or one of the foundations she spearheaded to 30 billion won (US$25.5 million).

Further adding to the bribery allegations is the fact that support for Jung’s equestrian training came immediately after the passage of a merger plan for Samsung C&T and Cheil Industries on July 17 of last year and a private meeting the following July 24 with Samsung Electronics vice chairman Lee Jae-yong. Coincidentally, Mainsee 959 - the previous incarnation of Widec Sports, which received a payment of 2.8 million euros (3.7 billion won, US$3 million) from Samsung Electronics - was established on July 17, the same day as the vote on the Samsung C&T merger.

In response to the additional revelations, Samsung acknowledged that it had sent money to Germany and that Jung was a “beneficiary,” stating that “a horse was purchased with the money” and that Jung “has ridden that horse.”

But the company also explained, “The Korea Equestrian Foundation (KEF) made plans to support equestrian athletes for the Tokyo Olympics, and we bought several horses to support that. We were supporting several athletes, not just Ms. Jung, and when [other] athletes were not selected because of internal KEF issues, Ms. Jung became the only one to ride, which she did on a few occasions.”

Samsung further said the money had been used to purchase Vitana V, a horse with a reported asking price of one billion won (US$851,000).

“We sold off the horses again this year because we sensed there might be a problem if Ms. Jung was the only one riding them. Some of the money went back in or is going back in,” the company added, explaining that it had not given the money or ownership of the horses to Choi or Jung.

But the KEF’s development of a “road map” including 18.6 billion won (US$15.8 million) in Samsung support for Jung’s event came in October 2015, the month after the 3.19 million euros were sent. The explanation that the support was provided separately after the KEF’s support plan went awry fails to hold water. Indeed, suspicions are only growing that the road map was intended simply as a way of packaging support to Jung as the KEF’s own. Also unconvincing is the explanation that 3.19 million euros were intended differently from another payment of 2.8 million euros sent around the same time to Widec Sports, a company owned by Choi and her daughter. Legal experts contend that even if Samsung’s explanation is correct and ownership of the horse was not officially granted to Choi, the methods involved were similar to the bribery practice of allowing use of an apartment or expensive car without signing over the title.

Samsung has already offered false or backpedaling explanations in the past over allegations surrounding support to Choi. After Minjoo Party lawmaker Do Jong-hwan made public an equestrian media report last September claiming Samsung had purchased Vitana V with plans for Jung to ride it, Samsung denied the allegations, claiming it “knew nothing” and “did not purchase a riding ground.” When Samsung Electronics external relations president Park Sang-jin was appointed head of the KEF, the company insisted he had “taken the position on personally” and said there had been “no support from the company.”

Its position changed again after the prosecutors’ investigation heated up and evidence of the 2.8 million-euro payment surfaced. Its explanation was that it was threatened into providing the support by former KEF secretary-general Park Won-oh, with Choi’s backing. After the additional revelations of another 3.19 million euros in support, it offered a different explanation, claiming that it had intended to support several athletes but that Jung alone benefited due to difficulties selecting others. Given the 2.8 million euros sent to Widec Sports by Samsung for “consulting fees,” the precise pathways and circumstances of the additionally discovered payments now appear to be a matter for investigation.

By Lee Jeong-hun and Lee Wan, staff reporters

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