Categories: Asia News

Choi Soon-sil Scandal: Samsung, Hyundai and other South Korean Companies Face Corruption Inquiry

Eight of South Korea’s biggest businesses, including Samsung and Hyundai, are being questioned by parliament in a rare TV hearing as part of a huge corruption inquiry.

The companies admitted giving millions of dollars to funds linked to President Park Geun-hye, but denied seeking favors.

Samsung admitted to giving the daughter of Park Geun-hye’s friend an expensive horse.

Parliament is due to vote on December 9 on the president’s impeachment over her involvement in the scandal.

Massive protests have been held in recent weeks demanding the president’s resignation.

The executives are being questioned by a cross-party committee of lawmakers. The panel has no power to punish but its chairman has said the hearing is a place for apology.

One of the corporate bosses acknowledged that it was difficult for companies to say no to government requests.

Image source Wikimedia

“It’s a South Korean reality that if there is a government request, it is difficult for companies to decline,” said Huh Chang-soo, head of the GS Group and chairman of the Federation of Korean Industries lobby group.

The conglomerates all gave large donations to non-profit foundations operated by Choi Soon-sil, a close confidante of Park Geun-hye.

Choi Soon-sil has been charged with coercion and attempted fraud.

Lawmakers spent the most time grilling Samsung’s Lee Kun-hee. Samsung has been accused of giving donations in exchange for support of a controversial merger that effectively strengthened his position in the company.

Samsung gave a total of 20.4 billion won ($17.46 million) to the two foundations.

Like the other leaders, Lee Kun-hee denied the allegations, saying Samsung “never provided support or gave donations in return for something”.

However, he admitted that his company provided a one billion won ($855,000) horse to Choi Soon-sil’s daughter, a professional equestrian, and said he regretted it.

Lee Kun-hee apologized for Samsung’s involvement in the scandal and said his company would “take all responsibility” if there was any.

South Korea’s family-owned conglomerates, known as chaebols, have increasingly been perceived as a symbol of the out-of-touch elite, and have become a target of public fury in recent protests calling for Park Geun-hye’s resignation.

The president has apologized multiple times to the public for allowing Choi Soon-sil inappropriate access to government decisions but has stopped short of resigning.

Last week Parke Geun-hye said she would leave it to parliament to decide her fate, and on December 6 she was quoted by her party’s leader as saying she would accept the outcome of December 9 impeachment vote.

Diane A. Wade

Diane is a perfectionist. She enjoys searching the internet for the hottest events from around the world and writing an article about it. The details matter to her, so she makes sure the information is easy to read and understand. She likes traveling and history, especially ancient history. Being a very sociable person she has a blast having barbeque with family and friends.

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