Former Samsung Lawyer`s Additional Revelation Conference

Samsung Group is alleged to have created slush funds worth about 200 billion won through its foreign branches, with some of the money spent on purchasing high-priced arts worth tens of billions of won.

Samsung’s former senior lawyer Kim Yong-cheol held a press conference at Jeki-dong Catholic Church in Dongdaemun-gu, Seoul on November 26. He said that Samsung SDI created slush funds through contracts on the funds with Samsung Corporation in London, Taipei, and New York.

Furthermore, Samsung chairman`s wife Hong Ra-hee, who is director of Leeum Samsung Museum of Art, and Shinsegae Group Chairwoman Lee Myung-hee, sent about 60 billion won abroad to buy expensive artwork with the slush funds in 2002-2003.

Regarding the window dressing settlement of Samsung’s affiliates, lawyer Kim said that he treated two trillion won of Samsung Heavy Industries, 1.6 trillion won of Samsung Techwin, two trillion won of Samsung Corporation, one trillion won of Samsung Engineering, and 600 billion won of Cheil Industries.

Kim Yong-cheol, concerning the alleged disguised separation of Joongang Daily, added that Kim In-joo, the head of Samsung’s Strategic Planning Department, asked him to write a secret contract claiming that the stock owner’s name should be Hong Seok-hyun, but to give only Chairman Lee Kun-hee voting rights.

Samsung Group said that the allegations are fake, distorted, and exaggerated with 5-page documents of explanations to counter Kim’s revelations. Samsung expressed its will to come up with legal countermeasures after reviewing the accusations meticulously.

Meanwhile, prosecutors said on the same day that it has prohibited some of the related people in the case from going abroad.