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Prosecution to Investigate Samsung Fund Scandal

2005-07-25 (월)
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By Kim Rahn
Staff Reporter


The prosecution has decided to launch an investigation into Samsung Group chairman Lee Kun-hee and South Korean Ambassador to the U.S. Hong Seok-hyun over allegations of an illegal campaign fund in 1997.

It said it will also investigate Lee Hoi-chang, former chairman of the Grand National Party and Lee Hak-soo, vice chairman of Samsung.


The People’s Solidarity for Participatory Democracy Monday requested the prosecution investigate about 20 politicians and business executives for alleged bribery and embezzlement.

The complaint was made after the nation’s leading broadcaster MBC reported tape recordings in which the nation’s spy agency eavesdropped conversations between Lee Hak-soo and Hong, then president of the Samsung-affiliated daily newspaper, JoongAng Ilbo.

The accused figures include Lee Hoi-sung, brother and campaigner of Lee Hoi-chang, then presidential candidate of then the ruling New Korea Party, and some 10 officials of the Justice Ministry.

The New Korea Party is the predecessor of the main opposition GNP.

``We believe the GNP candidate Lee took bribes in exchange for influence-peddling as he was quoted as saying in the recordings that he would help Samsung acquire Kia Motors,’’ the civic group members said at a media briefing.

It claimed that Samsung chairman Lee and Hong embezzled the group’s money to provide kickbacks to the ministry officials to seek their influence for the case that the group is under the prosecution’s investigation about crimes related to its management.

``We urge the authorities to thoroughly investigate those who received money from Samsung, as well as Hong and Samsung executives,’’ the group members said.


Presidential candidates of opposition parties at that time of the 1997 election, including former President Kim Dae-jung, will be added to the complaint, as they are also suspected of having received money from Samsung, the civic group said.

The solidarity filed the complaint for only the allegations involving more than 50 million won of bribes and 5 billion won of embezzlement, as the statute of limitations for other suspicions regarding lesser amounts of money had ended.

They also urged the prosecution to clarify the eavesdropping on private meetings of politicians, executives of conglomerates and senior journalists by the Agency for National Security Planning, predecessor of the National Intelligence Service.

Prosecutors have been cautious in launching the investigation, since it will require the investigation of dozens of former and incumbent high-profile figures, including former presidents.

In respect to the allegation that Samsung lobbied GNP’s Lee to seek his influence on acquiring Kia Motors, which Hyundai Group eventually acquired, the prosecution will have to investigate Samsung Chairman, Hong, and many high-ranking government officials.

``We will consider how to investigate the cases in various ways. We will try to meet the public’s hopes to clarify the illegal fundraising and eavesdropping,’’ Prosecutor General Kim Jong-bin told reporters.

Regarding the report that former and incumbent prosecutors received kickbacks from Samsung, Kim said the prosecution has yet obtained the list of them.

``We may not investigate the case, as the statute of limitations for it has expired. But we need to examine it anyway to improve the official discipline,’’ he said.

rahnita@koreatimes.co.kr

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