Samsung chief dismisses suspicion over tax probe on affiliates

Lee Kun-hee, chairman of South Korea's largest conglomerate Samsung Electronics Co., on Saturday dismissed recent suspicions over a tax probe into the company's three smaller affiliates, calling the probe a routine inspection.

The National Tax Service (NTS) said earlier this week that it has launched a tax probe into Samsung C&T Corp., Hotel Shilla Co. and Samsung Heavy Industries Co.

NTS officials said the investigation was part of the government's regular probe into large companies, but the move sparked suspicions the government was trying to get even with Lee, who said on March 10 the government's economic policy was not fully satisfying, though the government did not deserve an "F" on its report card.

Lee retracted his remarks on March 16, shortly after a senior official from the presidential office Cheong Wa Dae said the government was "displeased" with what he had said.

He again apologized for what he called a "misunderstanding" on March 31, saying his real intention was to point out that the country recovered from the global financial crisis before any other in the world.

Apparently trying to avoid further disputes with the government, Lee on Saturday said "there are routine tax probes" the government conducts when asked if he thought the latest probe into Samsung affiliates may have been prompted by his remarks.

He was speaking to reporters at Seoul's Gimpo International Airport upon his return from a trip to London for the Sport Accord International Convention where he and other South Korean officials and athletes presented PyeongChang, South Korea's bidding city for the 2018 Winter Olympic Games.

When asked about his company's poorer-than-expected earnings estimate released earlier this week, Lee said it was due to a "global trend" and that any reduction of sales and earnings will only be temporary and his company will make up for them in the near future. (Yonhap)