South Korea launches probe into Samsung Group's operations
10 Jan 2008
Mumbai: South Korea's Samsung Group, the country's largest conglomerate, is under probe for alleged bribing of public officials to squash investigations into its management practices.
An independent counsel started investigation into Samsung Group, on allegations of embezzlement, bribery and other irregularities. The counsel is expected to submit his report within 105 days.
The allegations include raising of a slush fund, bribing policymakers, prosecutors and judges and committing illegalities in the transfer of wealth from Chairman Lee Kun-hee to his only son Jae-yong.
The National Assembly endorsed the Samsung investigation after whistleblower Kim Yong-chul, a former lawyer for Samsung, disclosed sensitive internal business practices which he claimed were illegal.
Kim Yong-chul alleged last year that Samsung, South Korea's biggest conglomerate, set up a US$215 million slush fund to bribe influential figures such as prosecutors, judges and government officials.
Kim's claims spurred the National Assembly to pass legislation to enable the probe. President Roh Moo-hyun approved the bill last month
This is the first time the nation's largest family-owned conglomerate has been investigated by a special prosecutor.
Samsung has warned the probe could upset its business operations and denied the allegations but said it will cooperate with the investigations.