Samsung Electronics searched over role in DAS corruption case

Samsung Electronics headquarters in Seoul/Yonhap

By Kim Se-jeong

Prosecutors investigating DAS, a car seat maker, searched Samsung Electronics headquarters in Seoul on Friday over allegations the country’s flagship company paid the expenses for DAS’ overseas lawsuits in 2009.

DAS is under investigation for embezzlement but what makes the case more controversial is the suspicion its real owner is former President Lee Myung-bak, not his brother who owns the company on paper.

If it turns out the former president owned DAS, he will face charges of embezzling more than 10 billion won of the company’s money and of abusing his power as the nation’s president by mobilizing government officials for the company’s legal fight in the U.S.

Officials from the Seoul Central Prosecutors’ Office arrived at Samsung’s headquarters in southern Seoul on Thursday night and left early Friday morning, confiscating the company’s accounting files and documents for 2009 when it was suspected of transferring the money to DAS’ U.S. office.

Following the search on Friday, the prosecution summoned Samsung officials who were involved in the money transfer for questioning. The prosecution is also seeking to question Lee Hak-soo, Samsung Group’s former vice chairman who is currently staying abroad _ the prosecution also searched Lee’s home on Thursday.

In 2009, DAS was in a legal fight with BBK in which DAS invested 14 billion won in the early 2000s. It sued BBK’s CEO who absconded with the money to the U.S. DAS allegedly spent the money on a new legal representative.

The prosecution said it had been tipped about Samsung’s role in the payment during interrogations with people close to Lee. It suspects Lee received the money from Samsung in exchange for releasing the group’s then-Chairman Lee Kun-hee from jail. Earlier in 2009, Chairman Lee was convicted of creating a slush fund and pardoned in December.

The search came as another blow to Samsung which is entangled with the major corruption case involving former President Park Geun-hye and her confidant Choi Soon-sil.

The group’s heir Lee Jae-yong was released earlier this week from jail after being incarcerated for almost a year.

The prosecution’s hopes are high that what they will find through the search will help them prove that Lee was the real owner of DAS. The ongoing investigation into DAS was challenged by a lack of crucial evidence to prove Lee’s ownership.

Former President Lee condemned the prosecution in response, calling them puppets serving the interests of President Moon Jae-in. He even called the investigation political revenge.

The prosecution during his own presidency accused former President Roh Moo-hyun, closed friend of President Moon Jae-in, of taking bribes and ran a hard investigation of him. Roh took his own life during the investigation.