Corporate heads deny bribery allegations
Samsung Group Vice Chairman Lee Jae-yong, fifth from left, swears in as a witness before a National Assembly hearing into the Park Geun-hye scandal with eight other leaders of the country’s biggest conglomerates, Tuesday. They are, from right, Huh Chang-soo, GS Group Chairman and leader of the Federation of Korean Industries; Hyundai Motor Group Chairman Chung Mong-koo; Hanjin Group Chairman Cho Yang-ho; Lotte Group Chairman Shin Dong-bin; Lee; SK Group Chairman Chey Tae-won; Hanwha Group Chairman Kim Seung-youn; LG Group Chairman Koo Bon-moo; and CJ Group Chairman Sohn Kyung-shik. / Korea Times photo by Oh Dae-geun
By Yi Whan-woo
The leaders of nine major Korean conglomerates denied allegations that their “donations” to two foundations controlled by President Park Geun-hye’s confidant Choi Soon-sil were in return for business favors, during a National Assembly hearing Tuesday.
However, they partly admitted that Cheong Wa Dae pressed them to donate money to the Mir and K-Sports foundations, saying they had no choice but to “do as they were told.”
They also said they had no personal ties with Choi and her daughter Chung Yoo-ra, a dressage competitor for whom some conglomerates allegedly bought horses at their own expenses and paid for her overseas training.
Attending the hearing as witnesses were Samsung Group Vice Chairman and heir-apparent Lee Jae-yong, Hyundai Motor Group Chairman Chung Mong-koo, SK Group Chairman Chey Tae-won, Lotte Group Chairman Shin Dong-bin, Hanjin Group Chairman Cho Yang-ho, LG Group Chairman Koo Bon-moo, CJ Group Chairman Sohn Kyung-shik, Hanwha Group Chairman Kim Seung-youn and GS Group Chairman Huh Chang-soo who also leads the Federation of Korean Industries (FKI).
The hearing came amid a special investigation into President Park to find out whether she peddled influence for Choi to extort conglomerates for illicit gains.
Led by independent counsel Park Young-soo, a special investigation follows the now-concluded prosecution probe in which the President was identified as a “criminal suspect.”
Opposition lawmakers also included the allegations against Park as a reason they should oust her in an impeachment motion that will be put to a vote, Friday.
Meanwhile, lawmakers threw most of the questions at Lee, as Samsung was found to be the top “donor” to the foundations.
Samsung gave 20.4 billion won of the total 70 billion won ($59.7 million) raised.
Some legislators suspected Samsung also succeeded in selling four of its affiliates, including its chemical and defense units, to Hanwha in a deal worth 1.9 trillion won in November 2014 after presenting a horse worth 1 billion won to Chung.
“I wonder whether Samsung had no other way to sell its affiliates than to purchase a horse for the daughter of Park’s secret adviser,” said Rep. Chang Jae-won of the Saenuri Party.
Rep. Park Beom-kye of the main opposition Democratic Party of Korea (DPK) raised suspicions that Cheong Wa Dae ordered the government-run National Pension Service (NPS), which has a significant portion of Samsung shares, to facilitate a merger of Samsung subsidiaries to help its restructuring efforts.
Lee apologized over the allegations, although he did not clarify whether they were true.
“It’s regretful to be involved in such unsavory incidents,” he said. “I’ll try to make sure that such things will not happen again.”
However, he said he “never financially supported the troubled foundations in return for money or anything similar.”
He said he made the decision after Park asked him in a private meeting to do so to support the culture and sports industries.
“At that time, the President did not specifically mention the foundations and I did not fully understand what she meant,” he said.
He added he does not know Choi in person, although he has more recently become aware of her role as Park’s confidant.