Samsung’s Lee appears for questioning in bribery probe

Seoul, Jan 12 (IANS) Samsung's heir on Thursday was questioned by investigators as a bribery suspect after special investigators here accelerated their probe into the influence-peddling scandal centred on President Park Geun-hye and her friend, media reports said.

Lee Jae-yong, Vice Chairman of Samsung Electronics, appeared before the investigation team's office to undergo questioning over suspicions that the country's largest business group gave undue financial support to Park's friend Choi Soon-sil in return for business favours, Yonhap news agency reported.

South Korea's largest family-run conglomerate is suspected of having struck a $18.3 million contract with a Germany-based firm owned by Choi and her daughter under the name of a consulting arrangement to fund the daughter's equestrian training.

There have been allegations that the contract was signed in return for the state-run pension fund's backing of a major merger deal between Samsung subsidiaries in 2015.

Investigators are looking into whether the presidential office pressured the pension fund to support the merger in return for favours Samsung gave to Choi.

"I deeply apologise to the people for failing to show a positive image because of this incident," Lee said upon arrival at the investigation team's office.

As he entered the building, surrounded by some hundreds of reporters, some protestors picketed and shouted "Arrest Lee Jae-yong".

Moon Hyung-pyo, chief of the National Pension Service and former Health Minister, was formally arrested last month over his role in the merger deal.

When asked whether Lee can be charged with embezzlement or breach of trust for funding Choi with Samsung's money, the probe team's spokesman Lee Kyu-chul said they are "reviewing" the details.

South Korean conglomerates that donated to the foundations said, for the most part, they were told by the presidential office that the money was to promote South Korean culture abroad and the sports sector, and there was no thought of getting anything in return.

They said they were not in a position to shrug off the wishes of the President when she asked for help on the matter, hinting they were worried that rejecting the request could lead to repercussions.

Park was impeached by parliament for her alleged involvement in the scandal on December 9.

A Samsung official, who spoke on the condition of anonymity, said it is "hard to imagine" how Samsung's businesses would be affected if Lee is arrested.

Samsung has admitted that it made contributions to the foundations and the Germany-based firm set up by Choi, but denied allegations that such contributions were related to the 2015 merger.

Lee became a board member of Samsung Electronics last October and his father, Lee Kun-hee, has been hospitalised since suffering a heart attack in 2014.