Chaebol line up for questioning over scandal

By Park Hyong-ki

Chung Mong-koo, Hyundai Motor chief

Lee Jae-yong, Samsung vice chairman

Kim Seung-youn, Hanwha Group chairman

Cho Yang-ho, Hanjin Group chairman

The prosecution’s special investigative unit summoned Samsung Electronics Vice Chairman Lee Jae-yong, the heir apparent of the Samsung Group, for questioning Sunday afternoon.

Heads of top conglomerates have turned themselves in to the prosecution to be questioned about donations they allegedly made to scandal-ridden sports organizations set up by President Park Geun-hye’s close associate Choi Soon-sil.

The prosecutors held all-night questioning sessions of chaebol heads, including Hyundai Motor Chairman Chung Mong-koo, Hanwha Chairman Kim Seung-youn and SK SUPEX Council Chairman Kim Chang-geun, beginning Saturday afternoon and lasting to early Sunday morning.

Hanjin Group’s Cho Yang-ho was called in Sunday. LG Group Chairman Koo Bon-moo is also expected to be called in for questioning.

“We looked into whether they had met with the President, and the rest (whose companies had been connected to the scandal involving the sports foundations) will be brought in for unofficial questioning,” an official of the investigative unit said.

Seven of Korea’s leading family-run conglomerates, including Samsung are alleged to have donated billions of won to the Mir and K-Sports foundations. Several insiders of the organizations and the presidential office indicated they had provided the financing under pressure from the government.

An Chong-bum, a former senior presidential secretary for policy coordination, who is in custody, said the President met directly with conglomerate owners twice in the latter half of last year to request that they fund the establishment of Mir and K-Sports.

An was also implicated in his dealings with POSCO, in which he was alleged to have forced the steelmaker to hand over its majority stake in its in house advertising agency to Cha Eun-taek, a music video director who had close relations with Choi. POSCO Chairman Kwon Oh-joon was also summoned last week.

Samsung, Korea’s largest conglomerate, is alleged to have provided about 20 billion won through its subsidiaries to Mir and K-Sports with Samsung Electronics handing over the most at 6 billion won.

Prosecutors raided the headquarters of the tech giant last week, and questioned Park Sang-jin, the head of the company’s external affairs and the Korea Equestrian Federation, on whether Samsung Electronics also gave $3 million to a company in Germany owned by Choi to finance her daughter Chung Yoo-ra’s equestrian training.