Hong Seok-hyun

By Kim Rahn
Staff Reporter

Hong Seok-hyun, the chairman and publisher of the JoongAng Ilbo newspaper, was questioned as a ``suspect'' Tuesday over his alleged involvement in the Samsung Group's alleged illicit wealth transfer from its chairman to his only son.

The brother-in-law of Samsung Chairman Lee Kun-hee presented himself at the independent counsel's office at 2:00 p.m. for questioning.

``I'll cooperate with the investigators. There are false rumors (about the wealth transfer and other illegalities surrounding Samsung and me) but this probe will reveal the truth,'' he told reporters.

Prior to being interrogated, Hong submitted a written statement with regard to his alleged involvement in Samsung's activities.

Investigators questioned him over why the JoongAng Ilbo, which was the major shareholder of Everland in 1996, decided against buying convertible bonds (CBs) issued by the amusement park, the de facto holding company of Samsung, although their price was much lower than their market value.

The Samsung chairman's son, Lee Jae-yong, later bought the CBs, becoming the biggest shareholder of Everland and thus taking over managerial control of the conglomerate. It was alleged that the group orchestrated the deal and that Lee Kun-hee gave his shares in the newspaper to Hong in exchange for him not buying the CBs.

The counsel also looked into the allegation that Hong and other Samsung executives gave false testimony to the prosecution and manipulated evidence in 2006 when prosecutors examined the father-to-son wealth transfer.

Investigators also probed the allegation that the daily's detachment from Samsung in 1999 was faked. A former Samsung lawyer claimed Lee secretly entrusted Hong with his shares in the newspaper but retained their associated voting rights.

In addition, they questioned Hong over allegations that emerged in 2005 after a recording of phone conversations tapped by the National Intelligence Service was made public. According to the recording, Hong delivered bribes from the group to high-ranking prosecutors _ an allegation linked to the group's alleged bribery of public officials.

In the meantime, the counsel is likely to put off summoning Lee Kun-hee and his wife. ``We have not decided when to summon Lee,'' an investigator said, adding that questioning them this week was unlikely.

The independent counsel team first planned to question Lee and his wife before its initial investigation ends on Sunday, but decided to do so during an extension period. The probe can be extended by up to 45 days.

rahnita@koreatimes.co.kr