Will Probe Target Lee Jae-yong?
By Kim Rahn
Staff Reporter
An independent counsel has questioned an official from a defunct Samsung affiliate run by the group Chairman Lee Kun-hee's son in its probe into the conglomerate's alleged illegal father-to-son wealth transfer.
The special investigation team Monday summoned an official involved in e-Samsung, the group's IT business, which eventually folded.
The summons indicates that the prosecution is focusing its investigation into Samsung Chairman Lee's only son, Jae-yong who led 14 Internet venture companies including e-Samsung and Secui.com in 2000 as the largest shareholder.
The launch of the business was allegedly part of the conglomerate's plan to transfer the group's control to Jae-yong by giving him a chance to exhibit successful management ability.
But the companies became insolvent after just one year, with e-Samsung suffering 20 billion won in losses.
However, eight other Samsung affiliates purchased stocks of e-Samsung at high prices and Jae-yong did not suffer any financial damage. In 2005, a civic group, People's Solidarity for Participatory Democracy, filed a complaint against the son and heads of the affiliates, claiming they took Jae-yong's failure upon themselves, consequently causing damage to Samsung employees and shareholders.
The investigation, however, was improperly concluded and has now been included in the independent counsel's investigation.
The special prosecutor team also questioned another five Samsung executives over the group's alleged slush fund creation and bribery, including former Samsung Heavy Industries vice chairman Lee Hae-kyu. They are part of about 200 Samsung executives under whose names the group allegedly opened bank accounts to hide its slush funds.
The investigators also summoned a Samsung Fire and Marine Insurance executive, Kim Seung-eon, who is suspected of having disrupted the investigation by ordering his employees to destroy documents allegedly related to the slush fund creation. The team did not rule out the possibility of bringing criminal charges against him.
An investigator of the counsel said they would re-summon Hong Song-won, head of Seomi Gallery, who recently made public the high-priced painting by Roy Lichtenstein, ``Happy Tears.'' A former Samsung lawyer claimed that Samsung chairman's wife purchased the piece and other artworks through the gallery with part of the group's slush funds.