Samsung Group chief to face more charges

They include hiding proceeds of a criminal act and perjury

Mr Lee, chief of the Samsung Group, was grilled this week for the second time in a month.
Mr Lee, chief of the Samsung Group, was grilled this week for the second time in a month.PHOTO: EUROPEAN PRESSPHOTO AGENCY

SEOUL • The special prosecutor's office in South Korea said yesterday it had expanded charges against Samsung Group chief Lee Jae Yong to include hiding the proceeds of a criminal act before it decided to seek a warrant for his arrest for a second time.

Mr Lee, the third-generation leader of South Korea's top conglomerate, has been identified as a suspect by prosecutors in an influence-peddling scandal that could topple President Park Geun Hye. He was questioned for more than 15 hours straight this week, his second marathon grilling in a month.

The decision to add extra charges, which include hiding assets overseas, was made after a Seoul court denied prosecutors' first attempt to secure an arrest warrant for Mr Lee last month, a spokesman for the special prosecutor's office said. "For three weeks, we secured additional evidence that we can be sure about, and after careful deliberation have requested (an arrest warrant) for the second time," spokesman Lee Kyu Chul told reporters without elaborating.

South Korea's special prosecutor has focused on Samsung Group's relationship with Ms Park, accusing Mr Lee in his capacity as Samsung chief of pledging 43 billion won (S$53.6 million) to a business and organisations backed by Ms Park's friend, Choi Soon Sil, in exchange for support of a 2015 merger of two Samsung companies.

Ms Park, Choi and Samsung Group have denied bribery accusations.

Ms Park was impeached by Parliament in December and South Korea's Constitutional Court will decide whether to uphold that decision. She has been stripped of her powers in the meantime.

The prosecution is also bringing an additional charge of perjury against Mr Lee.

It has also requested an arrest warrant for Samsung Electronics president Park Sang Jin, who was also questioned on Monday. The charges that he and Mr Lee face also include bribery and embezzlement.

A Seoul court said on Tuesday it would hold a hearing on the request for arrest warrants at 10.30am (9.30am local time) today. Based on previous instances, the court's decision is expected later today or most likely early tomorrow.

The prosecution also said it would decide later whether to seek charges against three other Samsung executives. Samsung Group president Chang Choon Ki was also questioned on Sunday and another executive on Monday.

Yesterday, Samsung Group repeated an earlier denial on its official Twitter account: "Samsung has absolutely never bribed the president seeking something in return or sought illicit favours.

"We will do our best for the truth to be revealed in court," it said.

Earlier this month, prosecutors searched the offices of the antitrust agency, the Korea Fair Trade Commission, and financial regulator, the Financial Services Commission, as part of their investigation of Samsung Group.

The special prosecution office's mandate to conduct the graft investigation will expire on Feb 28, unless it is extended.


A version of this article appeared in the print edition of The Straits Times on February 16, 2017, with the headline 'Samsung Group chief to face more charges'. Print Edition | Subscribe