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Opposing Claims Concerning Samsung`s Bribery Allegations

Opposing Claims Concerning Samsung`s Bribery Allegations

Posted November. 06, 2007 03:18,   


Kim Yong-cheol (49), who was once the director of a legal department attached to Samsung’s corporate restructuring office (now called the strategic planning office), and who recently brought allegations against Samsung, said yesterday, “I gave cash bribes to dozens of prosecutors amounting to tens of millions of won every year.”

The allegations against Samsung were first brought to light earlier this week by Kim Yong-cheol, who was once the director of a legal department attached to the secretarial office of the group’s chairman

Instead of publicly avoiding rebutting the allegations of Kim, Samsung Group has actively responded to them in a thorough manner by issuing related documents.

Kim said in a press conference held by civic organization Catholic Priests’ Association for Justice at a Catholic church in Jegi-dong, Seoul, “Bribes awarded to prosecutors were mobilized in the form of slush funds handled through some 60 Samsung affiliates. Quite a few incumbent top tier prosecutors received money from Samsung.”

He added, “Prosecutors make up only a small portion of those ‘managed’ by Samsung. Cash bribes awarded to officials at the Ministry of Finance and Economy or National Tax Service, with which Samsung has direct interests, pale in comparison with those given to prosecutors.”

In regard to Samsung’s issuance of convertible bonds at low prices, he said, “Samsung fabricated witnesses and testimonies, and insulted the court using its monetary might. As the chief of the legal department, I am an accomplice to that.”

Kim did not disclose internal documents related to how Lee Jae-yong, vice president of Samsung Electronics, made a fortune due to the risk of losing them as the venue was crowded with many reporters.

Samsung responded to the charges, saying, “Kim’s arbitrary, unilateral arguments have tarnished the company’s image and threatens our management activities and global businesses. Therefore we will aggressively address the matter instead of remaining quiet.”

Samsung argued, “We have never given money to prosecutors or judges and have never had Kim do such things. Concerning the Ministry of Finance and Economy or National Tax Service, Kim was in a position that had nothing to do with them.”

In response to allegations that witnesses and facts were fabricated, Samsung asserted, “Investigations and court proceedings are taking place, and many civil organizations and media have been closely following the case. Kim will need to clearly comment on how we have obstructed any investigations.”

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