Samsung heir Lee Jae-Yong has become a criminal suspect in a widening
probe into the corruption and influence-peddlingscandal engulfing
impeached South Korean President Park Geun-Hye, prosecutors said
Wednesday.
Lee, vice chairman of Samsung Electronics and the son of the Samsung
Group chairman Lee Kun-Hee, would be quizzed as a “suspect” in
connection to bribery, prosecutors said.
“We have decided to question Lee tomorrow morning… as a suspect,” Lee
Kyu-Chul, spokesman for the team of special prosecutors investigating
the scandal, told reporters.
The affair centres on Park’s secret confidante Choi Soon-Sil, who is
accused of using her ties to Park to coerce top firms into “donating”
tens of millions of dollars to two non-profit foundations which Choi
then used as her personal ATMs.
Samsung was the biggest contributor to the foundations. It is also
accused of separately giving millions of euros to Choi to bankroll her
daughter’s equestrian training in Germany in a bid to curry favour.
Prosecutors have for months questioned Lee and other senior Samsung
officials. The officials reportedly argued that although they were
coerced to offer money, they sought no favours in return and thus the
payments were not a bribe.
Spokesman Lee said prosecutors “left open the possibility” of formally arresting the Samsung scion later.
Prosecutors are investigating whether Samsung bribed Choi in order to
win state approval for a controversial merger which it sought in 2015.
The merger of two Samsung group units — Cheil Industries and Samsung
C&T — was seen as a crucial step towards ensuring a smooth
third-generation power transfer to Lee Jae-Yong.
It was criticised by many, who said it wilfully undervalued Samsung
C&T’s stocks. But the National Pension Service (NPS) — a major
Samsung shareholder — voted in favour of the deal and it eventually went
through.
Prosecutors have raided multiple Samsung offices as well as the NPS
in connection with the scandal. The fund — the world’s third largest
pension fund — is overseen by the welfare ministry.
A former welfare minister was arrested last month for allegedly pressuring NPS officials to vote in favour of the Samsung deal.
Park, who stands accused of colluding with Choi to extract money from
the firms, was impeached by parliament last month but denies any
criminal wrongdoing.
The Constitutional Court is currently reviewing the validity of her
impeachment — a process that may take up to six months. If the court
approves the impeachment, a presidential election will be held in 60
days.
Choi, daughter of a shady religious figure who was close to Park for
decades until his death in 1994, is on trial for charges including
coercion and abuse of power.
The latest scandal shed light on unhealthy ties between the
government and the powerful family-controlled conglomerates that have
powered the country’s economy for decades.
There have been frequent scandals in which top managers at the
conglomerates, known as chaebol, bribed officials to curry favour.
The founding families of the conglomerates have also become the
targets of growing public mistrust. They are accused of running their
global businesses with minimum scrutiny by regulators and investors.
The Samsung group — the South’s largest business empire — has a vast
array of businesses including its flagship Samsung Electronics, the
world’s largest maker of smartphones.
The group’s founding Lee family has stepped up efforts to accelerate
the power transfer to Lee Jae-Yong after his father suffered a heart
attack in 2014 that left him bedridden.
AFP
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