Prosecutors raid Samsung over Choi scandal

Reporters wait in the lobby of Samsung Electronics headquarters in southern Seoul, Tuesday, as prosecutors search the company for details of money allegedly given to President Park Geun-hye’s confidant Choi Soon-sil. / Yonhap

By Jung Min-ho

Prosecutors raided the headquarters of Samsung Electronics in Seoul, Tuesday, over money it allegedly gave to President Park Geun-hye’s confidant Choi Soon-sil.

According to the Seoul Central District Prosecutor’s Office, investigators raided nine places, including the firm’s external affairs department as well as the office and house of Park Sang-jin, chief of the department and president of the Korea Equestrian Federation (KEF). It also banned Park from overseas travel.

Offices of the KEF and the Korea Racing Authority (KRA) were among places searched.

Samsung is suspected of sending over 2.8 million euros to Core Sports, which was later renamed Widec Sports, a company which Choi and her daughter Chung Yoo-ra set up in Germany, from September to October last year. Widec Sports is suspected of being used to funnel money from sports foundations in Korea.

Park allegedly met Choi in Germany in August that year before sending the money.

Prosecutors suspect the money was actually used to support Chung, a dressage competitor. She allegedly spent the money to purchase her horse, Vitana V, which is reportedly worth 1 billion won ($880,000) as well as for her training.

Samsung insists that the money was paid as a “consulting fee” to Choi’s company to foster young sports talent, but it is unclear who else, other than Chung, has been a beneficiary of the money.

Prosecutors suspect that Samsung expected something in return from Choi who allegedly orchestrated state affairs through her close ties with President Park.

In an interview with a Korean broadcaster, Robert Kuypers, former co-representative of Core Sports, said he left the post after just three days because so much of the organization seemed opaque. He also insisted that Samsung paid the money in return for the Korean government’s assistance in dealing with labor union issues and support for its research, saying Samsung’s Park and Choi met several times in Germany. Samsung has denied his claims.

Among the conglomerates that “raised” 80 billion won ($70 million) for the Mir and K-Sports foundations set up by Choi, Samsung was the biggest contributor with a total of 20.4 billion won.

The prosecution has been looking into why exactly the companies decided to chip in for the foundations that had no clear purposes and how the money was spent. So far, no one else other than Choi and people who are close to her have benefited from the funds.

On the website of the International Equestrian Federation (FEI), Chung earlier introduced herself as a rider for Team Samsung in her profile, which was denied by the company. After the issue came to the media spotlight, her profile was deleted.

The KEF and KRA are suspected of drawing up a long-term roadmap to support dressage competitors for the 2020 Tokyo Olympics, such as training in Germany with Samsung paying 18.6 billion won for this. The support plans are allegedly only for Chung.

Under the patronage of her mother, Chung is suspected of enjoying special treatment for almost everything. Most notably, she allegedly received favors in the admissions process and her grades at Ewha Womans University, an allegation which forced the school President Choi Kyung-hee to step down last month.