Samsung Chairman Denies Illegal Lobbying

A special investigation team probing Samsung Group’s slush fund scandal summoned Samsung Group Chairman Lee Kun-hee on Friday over the allegations of his involvement in the creation of slush funds under borrowed-name accounts, illicitly lobbies and illegal transfer of managerial control.

This was the first time in 13 years for the head of the nation’s largest conglomerate to appear at an investigation authority since he was summoned to the Supreme Prosecutors` Office over the slush funds of the two former Presidents, Chun Doo-hwan and Roh Tae-woo, in 1995.

When asked by reporters upon his arrival Friday afternoon at the independent counsel’s office whether he instructed issuance and selling of Samsung Everland’s convertible bonds, Lee said, “I don’t remember.” He also denied his alleged instruction of the creation of slush funds and illegal lobbies.

The special investigation team led by independent counsel Cho Jun-Woong questioned him over his alleged lobbying of politicians and legal professionals, such as Kim Sung-ho, chief of the National Intelligence Service; four suspicions on illegitimate transferring of management control, including the issuance of Everland’s CBs at a lower price; the sources of money deposited in 1,300 borrowed-name accounts; and the alleged evasion of capital gains tax on the earnings created by stock trading with the illicit fund.

After a brief talk with special prosecutor Cho, Lee was questioned until late night by a number of assistant independent counsels and prosecutors.

Having finished their questioning of Lee, the special team plans to announce the results of their investigation on April 21, two days before their investigation period comes to an end.

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