A South Korean political scandal has seen Samsung executives face accusations of corruption, and even arrest warrants
Samsung Group is embroiled in a political scandal that has dominated headlines in South Korea lately. It’s one in every of a number of main conglomerates accused of creating donations to non-revenue foundations in change for political favors, which in Samsung’s case might have smoothed the trail for a controversial merger, which was accepted in July 2015.
After prosecutors raided Samsung’s company workplaces in Seoul, South Korea, on the finish of November 2016, firm executives have repeatedly appeared earlier than a parliamentary committee, whereas hyperlinks to bribery and corruption are investigated by a particular prosecutorial staff. Ultimately, Samsung head Lee Jae-yong was questioned, resulting in an arrest warrant being sought.
Right here’s every part that you must know concerning the ongoing case.
What’s the background?
The accusations towards Samsung and different South Korean corporations together with Hyundai, SK Group, and Lotte Group, are associated to the continued investigation into South Korea’s president Park Geun-hye, and her involvement in extorting cash from main firms.
President Park has been accused of aiding in an extortion scheme with unofficial presidential aide Choi Quickly-sil. Greater than 50 companies have been allegedly pressured to make donations probably worth $69 million to sporting foundations backed by Choi, which have been set up following the Samsung merger, then used for personal financial gain and in change guaranteeing offers.
The November 2016 raid of Samsung’s headquarters occurred alongside one other on the nationwide pension fund, which in accordance with a local report from the Yonhap Information Company, might have been pressured into supporting the controversial Samsung merger in 2015. The fund’s approval is considered very important to the merger’s success, and a shocking transfer on the time, as a result of allegations it benefitted the Samsung Group’s controlling household greater than the shareholders. The top of South Korea’s Nationwide Pension Scheme, Moon Hyung-pyo, who was arrested in December 2016, has been indicted on fees of abuse of energy and perjury. It wasn’t the primary time Samsung had been raided in relation to the investigation into Park and Choi both. One other befell earlier in November.
Samsung says in its official assertion, “It’s troublesome to agree with the particular prosecutor’s determination, as a result of Samsung didn’t contribute to be able to obtain favors,” and the corporate denies the allegations towards itself and Lee Jae-yong. The recall and arrest warrant got here only a month after South Korea voted to impeach president Park Geun-hye, who has referred to as the accusations towards her “groundless.” Choi Quickly-sil additionally denies any improper doing.