April 25, 2024

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[THE INVESTOR] Samsung Electronics Vice Chairman Lee Jae-yong on Dec. 6 denied any connection between last year’s merger of Samsung C&T and Cheil Industries and his leadership succession of the group.

Testifying about the group’s 20 billion won (US$17 million) funding to bogus foundations controlled by Choi Soon-sil -- President Park Geun-hey’s close aide who is at the center of the snowballing influence-peddling scandal -- the Samsung heir admitted that the president requested support for the foundations but denied the donations were made in return for any business favors.

 

Ahn Hoon/The Investor

Prosecutors are investigating whether Choi had put pressure on the National Pension Service to support the controversial merger deal that was opposed by Samsung C&T investors due to an unfavorable share swap ratio. The deal was considered a crucial step for Samsung’s business restructuring ahead of a pending leadership transfer to Lee.

“The merger had nothing do to with my succession,” he said, adding that the decision was made by the top brass of the two firms.

“It has been just more than a year since the merger. I’ll prove it was the right decision.”

Lee was one of the nine tycoons who were summoned by the National Assembly to testify about their funding to the foundations operated by Choi. Samsung is also accused of offering financial assistance to Chung Yoo-ra, Choi’s daughter who is a former national equestrian player.

By Lee Ji-yoon (jylee@heraldcorp.com)