Samsung chairman appears for questioning in corruption probe
SEOUL (AFP) — The head of South Korea's biggest business group Samsung appeared for questioning Friday as part of a high-profile probe into an alleged multi-million dollar bribery slush fund.
Group chairman Lee Kun-Hee, 66, denied he authorised the creation of such a fund when questioned by journalists outside the special prosecutor's office.
"No, I didn't," he responded, grim-faced.
Lee angrily rejected a suggestion that his group is now being seen by the public as a crime ring.
"I don't think so. I think you are the problem who described (Samsung) like that," he told journalists, while also apologising "for causing trouble."
About 50 protesters from rival groups shouted slogans outside the office, some demanding Lee be arrested immediately and others urging a halt to the probe. Hundreds of riot police were deployed.
Parliament voted to set up the independent probe into claims by the group's former chief lawyer that it created a slush fund totalling 200 billion won (197 million dollars) to bribe government officials and politicians.
Investigators began work in January and said Friday they have asked President Lee Myung-Bak to extend their mandate until April 23.
"There are many things to ask (Lee)," Yun Jung-Sok, a spokesman for the investigators, said earlier.
He said his team would decide whether to indict the Samsung chairman, who is being questioned as a suspect, after completing the investigation.
The special prosecutors have also investigated whether control of the group was illegally transferred from Lee to his son and heir apparent, Lee Jae-Yong, who is a senior executive of Samsung Electronics.
The son was questioned in March but investigators said there was insufficient evidence to indict him.
Samsung denies the allegations and says the probe could damage its business at a tough time. A group spokesman said it was "surprised and concerned" at the summons for Lee.
Despite calls by business leaders to wrap up the probe, the prosecutors have mounted an aggressive investigation.
They have searched Lee senior's private home and office and questioned dozens of senior officials over allegations that bank accounts were opened in their names to hide the slush fund.
Lee's wife Hong Ra-Hee, who runs a prestigious art gallery, was questioned Wednesday over claims that the suspected fund was used to buy expensive paintings.
Lee and other corporate leaders were questioned in 1995 over suspicions that they bribed politicians.
Lee was later convicted of contributing to a slush fund for then-president Roh Tae-Woo and received a suspended jail sentence. He was pardoned in 1997.
The probe has put the business practices of the chaebol -- big family-run conglomerates -- back into the spotlight.
Backed by state funds the chaebol created the "Miracle on the Han" which transformed South Korea from a destitute war-shattered nation into the world's 13th largest economy.
But their excesses were partly blamed for the country's travails during the East Asian financial crisis of 1997-98.
Liberal groups say the probe will enhance corporate transparency while business lobby groups want it wound up quickly.
Samsung, which wields enormous influence in South Korea. Group-wide assets are valued at 280.8 billion dollars and its exports were worth 66.3 billion dollars last year, more than 20 percent of the nation's total.
Sixteen religious and community leaders sent a petition to investigators Thursday demanding they finish work soon. "The probe has been causing enormous damage to our economy, with Samsung's business and image abroad seriously hurt," it said.
Daishing Securities analyst Sung Jin-Kyoung said Lee was not expected to face serious punishment even if he is indicted, under the business-friendly administration of President Lee.
But the group "is now under pressure to enhance transparancy in corporate governance and management," he said.
