Samsung Electronics Vice Chairman Summoned - The Korea Times

Samsung Electronics Vice Chairman Summoned

By Kim Tae-jong

Staff Reporter

Prosecutors summoned Samsung Electronics Vice Chairman Lee Hak-soo Thursday to question him over the group's alleged slush fund creation and bribery. The questioning came hours after investigators from the special prosecutor team raided Samsung Electronics headquarters in Suwon, Gyeonggi Province.

The vice chairman, known as the second-most powerful man in the group, has assumed the chief post at the group's planning and restructuring office. He has been accused of having played a key role in raising slush funds and bribing government officials and lawmakers.

At the same time, investigators seized documents and computer files related to the conglomerate's alleged illegalities, including the shady wealth transfer from group Chairman Lee Kun-hee to his only son Jae-yong.

The headquarters house the main digital media, handset and other information/telecom operations of the company.

The search was the latest in a series of raids since the end of last year, including ones on Samsung Securities, Samsung Fire and Marine Insurance, Samsung SDS, the group headquarters, and the chairman's home and private office.

The independent counsel in charge of the investigation said the Seoul Central District Court issued a search warrant requested by the team to secure tax payment records of Lee, his son and other family members, late Thursday.

``We sought the warrant to collect necessary tax records,'' Yoon Jeong-seok, an assistant prosecutor for the team, told reporters Thursday.

The warrant is to secure the tax payment history and status of property of the chairman and Jae-yong, Yoon said. The move is to check whether some slush funds have found their way to Lee's family.

The request for a search warrant came after the National Tax Service refused to offer required information and documents to the independent prosecutor.

Meanwhile, the counsel Thursday summoned and questioned Je Jin-hoon, chairman of Cheil Industries, one of the group's affiliates, amid allegations that he was involved in the so-called ``e-Samsung'' scandal.

Je allegedly supported e-Samsung, a venture firm set up by Jae-yong which was on the verge of insolvency in 2000 when he served as CEO of Samsung Capital. The support was criticized as an effort to help the chairman's son at the financial risk of Cheil Industries. 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.

e3dward@koreatimes.co.kr

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