By Choi Sung-jin
The nation's business community has fallen into dreadful anxiety as the prosecution steps up its probes into "Choi Soon-sil gate," fearing that companies may be "hit by a stray bullet," corporate sources said Monday.
Prosecutors have summoned Lee Seung-cheol, vice chairman of the Federation of Korean Industries, a lobby group for family-controlled conglomerates, to investigate what he did on behalf of Cheong Wa Dae in raising the money for two suspicious foundations by twisting the arms of large businesses.
Lee is suspected of acting as a go-between by telling large businesses to donate up to 80 billion won ($70 million) to the two foundations _ Mir and K-Sports _ allegedly set up by Choi, a four-decade confidant of President Park Geun-hye, for promoting the nation's culture and sports, respectively.
Related business groups, each of which has donated several million dollars, remain very attentive about the prosecution's probes and how far their political repercussions will spread.
Most of these conglomerates claim the donations have been made through due process and formality and that they are ready to respond to the prosecutorial investigations. However, most of them are concerned the current controversy would hamper normal business activities and spread anti-business sentiments among the public.
"The donor groups are suffering in silence because they were forced to dip into their pockets for political reasons and have now become the targets of suspicion," an industry executive said Monday on condition of anonymity. Fifteen conglomerates, including Samsung, Hyundai, SK and LG groups, donated 48.6 billion won to Mir, and 18 groups raised 28.8 billion won for K-Sports.
Prosecutors are stepping up probes into how the organizations were set up and run, while politicians are calling for the appointment of a special prosecutor or for parliamentary probes into the money-raising scandal.
The FKI and its major member companies are being extremely cautious in dealing with the situation. Some groups have said the donations were made at the request of the FKI and they are not directly related with the foundations in any way.
POSCO, Korean Air and Asiana Airlines said in unison that their donations "were made at FKI's request and in lawful ways after winning the approval of our board of directors."
Other groups were also extremely cautious in expressing their positions with respect to intensifying investigations. "This is a sensitive issue," said a GS-Caltex official. "We have heard nothing in regards to the scandal yet."
A Hyundai Motor Group executive also said, "We have nothing to say about the scandal and its probes, nor have we heard from the law enforcement authorities."
A Hanwha Group official said, "Because our group has taken part in raising the money, we are not ruling out the possibility of undergoing the investigation, but is yet to hear anything from prosecutors. We will just wait and see."
"Most of these conglomerates are nervous that the sparks of the ongoing scandal will fly in their faces," said the anonymous source summing up the atmosphere gripping the business circles "And they are concerned that the unprecedented scandal will reignite anti-business sentiments and freeze the already low business confidence."
The nation's business community has fallen into dreadful anxiety as the prosecution steps up its probes into "Choi Soon-sil gate," fearing that companies may be "hit by a stray bullet," corporate sources said Monday.
Prosecutors have summoned Lee Seung-cheol, vice chairman of the Federation of Korean Industries, a lobby group for family-controlled conglomerates, to investigate what he did on behalf of Cheong Wa Dae in raising the money for two suspicious foundations by twisting the arms of large businesses.
Lee is suspected of acting as a go-between by telling large businesses to donate up to 80 billion won ($70 million) to the two foundations _ Mir and K-Sports _ allegedly set up by Choi, a four-decade confidant of President Park Geun-hye, for promoting the nation's culture and sports, respectively.
Related business groups, each of which has donated several million dollars, remain very attentive about the prosecution's probes and how far their political repercussions will spread.
Most of these conglomerates claim the donations have been made through due process and formality and that they are ready to respond to the prosecutorial investigations. However, most of them are concerned the current controversy would hamper normal business activities and spread anti-business sentiments among the public.
"The donor groups are suffering in silence because they were forced to dip into their pockets for political reasons and have now become the targets of suspicion," an industry executive said Monday on condition of anonymity. Fifteen conglomerates, including Samsung, Hyundai, SK and LG groups, donated 48.6 billion won to Mir, and 18 groups raised 28.8 billion won for K-Sports.
Prosecutors are stepping up probes into how the organizations were set up and run, while politicians are calling for the appointment of a special prosecutor or for parliamentary probes into the money-raising scandal.
The FKI and its major member companies are being extremely cautious in dealing with the situation. Some groups have said the donations were made at the request of the FKI and they are not directly related with the foundations in any way.
POSCO, Korean Air and Asiana Airlines said in unison that their donations "were made at FKI's request and in lawful ways after winning the approval of our board of directors."
Other groups were also extremely cautious in expressing their positions with respect to intensifying investigations. "This is a sensitive issue," said a GS-Caltex official. "We have heard nothing in regards to the scandal yet."
A Hyundai Motor Group executive also said, "We have nothing to say about the scandal and its probes, nor have we heard from the law enforcement authorities."
A Hanwha Group official said, "Because our group has taken part in raising the money, we are not ruling out the possibility of undergoing the investigation, but is yet to hear anything from prosecutors. We will just wait and see."
"Most of these conglomerates are nervous that the sparks of the ongoing scandal will fly in their faces," said the anonymous source summing up the atmosphere gripping the business circles "And they are concerned that the unprecedented scandal will reignite anti-business sentiments and freeze the already low business confidence."
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