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Thursday, 12 January 2017
Samsung head named a suspect in South Korea political probe
A South Korean special prosecutor's office will question Samsung Group leader Jay Y. Lee as a suspect in a widening influence-peddling scandal that may force President Park Geun-hye from office. Prosecutors have been looking into whether Samsung payments of about 30 billion won ($25 million) for a business and foundations backed by Park's friend, Choi Soon-sil, were connected to a 2015 decision by the national pension fund to back a controversial merger of two group affiliates. Park could become South Korea's first democratically elected leader to leave office early after parliament voted in December to impeach her over the corruption scandal, which has triggered big weekly rallies calling for her to step down. The impeachment must be upheld or overturned by the Constitutional Court.
A spokesman for prosecutors, Lee Kyu-chul, told a briefing the Samsung leader had been summoned for questioning at 9:30 a.m. on Thursday (7 p.m. ET on Wednesday) over suspicions including bribery. Proving quid-pro-quo dealings between the Choi-linked organizations and Samsung are critical to prosecution efforts to bolster its case against President Park and show that she, or a surrogate such as Choi, collected bribes in exchange for favors, analysts said. For Samsung and its founding Lee family, an indictment or conviction of Jay Y. Lee would deal a blow to efforts to secure a stable transfer of control to heirs from ailing patriarch Lee Kun-hee.
Samsung has acknowledged making contributions to two foundations as well as a consulting firm controlled by Choi but has repeatedly denied accusations of lobbying to push through a controversial 2015 merger of its Samsung C&T and Cheil Industries Inc units.
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politics everywhere, even in business
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