Samsung chief Lee Jae-yong quizzed again over corruption scandal

Samsung Electronics Vice Chairman Lee Jae-yong, center, arrives at the independent counsel team's office in southern Seoul in Monday morning. / Korea Times photos by Choi Won-suk

Special prosecution considers seeking arrest warrant again

By Lee Kyung-min

The independent counsel team summoned Samsung Electronics Vice Chairman Lee Jae-yong again, Monday, for questioning about bribery allegations in connection with the corruption scandal involving President Park Geun-hye.

The second summons of Lee followed a three-week in-depth investigation after its arrest warrant request was denied by a district court, Jan.19.

Lee appeared at the team’s office in Daechi-dong, southern Seoul at 9:30 a.m.

“Today I will also tell the truth sincerely to the team,” he told reporters before entering the office. He refused to make any more comments.

The team’s questioning this time is expected to focus on allegations that Cheong Wa Dae, through the Fair Trade Commission (FTC), granted the group business favors in exchange for financial support for Choi’s daughter, Chung yoo-ra, a dressage competitor.

The independent counsel team said it has yet to consider whether to ask for a warrant to arrest the Samsung heir.

“We are considering filing for an arrest warrant,” said Lee Kyu-chul, the team’s spokesman, during a press briefing.

Prosecution officials said they may file for a warrant as early as Wednesday.

The summons came hours after a local media outlet reported a story about the team securing what it believes is conclusive evidence that could prove bribery allegations involving Lee, President Park and her confidant Choi Soon-sil.

According to the report, the team secured text messages between Lee and group executive Park Sang-jin over specifics about purchasing a 3 billion-won ($2.6 million) dressage horse for Chung last October.

Park Sang-jin was questioned alongside Hwang Sung-soo, another Samsung executive, 30 minutes after Lee was summoned.

Given that the media began to report the influence-peddling scandal in late July last year, the team believes the horse was given to Chung in exchange for favors.

The team said the purchase was made soon after Lee sent Park Sang-jin to Germany, where Choi was staying, Sept. 27, to find out what she needed for her daughter. It added that the text messages show Lee’s involvement in detail.

Lee convened three executive meetings in late July 2015, shortly before and after he had a one-on-one meeting with the President on July 25, during which Park allegedly asked Lee to support Chung.

This allegation is backed by the evidence secured by the prosecution in the form of 39 diaries kept by former presidential secretary An Chong-bum, who is on trial at the Seoul Central District Court alongside Choi.

Following the executive meeting, Park Sang-jin asked Park Won-oh, the chairman of the Korea Equestrian Federation, to come up with ways to set up a consulting firm to support Chung before he left for Germany to meet Choi, according to the counsel’s team.

The firm signed a 21.3 billion-won consulting contract with Widec Sports, a company set up by Choi in Germany in August 2015.

Samsung denied all allegations.

Meanwhile, Lee’s attitude was marked by less of an expression of regret but more of thinly-veiled confidence.

When he appeared before the team on Jan. 12, he bowed deeply before offering an apology for causing concern among the public over the group’s alleged involvement due to what he claimed was Cheong Wa Dae’s extortion.

On Monday, however, he did not offer any apology, only delivering his intention to cooperate with the investigation.

The team believes Cheong Wa Dae exerted influence with the financial watchdog to spare the group substantial business costs in 2015.

While the FTC initially ordered Samsung SDI to sell off 10 million shares of Samsung C&T, as part of strengthened cross-shareholding guidelines, it later allowed the group to sell off only half the amount.

The allegations so far have been that President Park pressured the National Pension Service (NPS) to vote for a controversial merger of two Samsung Group affiliates ― Samsung C&T and Cheil Industries ― in exchange for the group’s financial support of Chung.

The merger was crucial for Lee to cement himself as the group’s heir apparent amid his father's years-long hospitalization.

Depending on the outcome of Lee’s questioning, the team will decide whether to seek another arrest warrant for him.