April 19, 2024

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[THE INVESTOR] Samsung Group on Dec. 21 denied speculations that Samsung had paid for the living expenses of Choi Soon-sil, a key figure in the influence-peddling scandal surrounding President Park Geun-hye, and Choi’s daughter in Germany.

“Samsung has nothing to do with the expense invoices which a news report claimed had been filed by Core Sports to Samsung,” said Samsung in a statement.

Core Sports, which later changed its name to Widec Sports, is one of the German paper companies run by Choi.

The long-time friend of President Park allegedly arm-twisted Korean conglomerates to offer around 80 billion won(US$67 million) of funds for her dubious organizations and paper companies.

The JoongAng Ilbo reported earlier on the day that the tech giant paid for the stay of Choi and her daughter Chung Yoo-ra in Germany from June to September in 2015.

The newspaper quoted a former Core Sports official as saying, “(Choi and her daughter) filed the first expense invoice to Samsung Electronics at the end of 2015.”

“They requested 810,000 euros ($841,632) for all the expenses they spent since May last year, and Samsung paid the amount without asking any question.”

The money was spent to buy various items, such as products for baby care and pets, and food.

The group said that its crown jewel Samsung Electronics signed a 200-billion-won contract, in a legal and proper way, with Core Sports, to nurture six equestrian athletes in August last year, and the contract stated any expenditure without Samsung’s consent cannot be approved.

The conglomerate argued expenses noted on the invoices incurred from June to July last year, a month before the contract was signed between the tech firm and the paper company.

Samsung is suspected of having provided a total of 44 billion won for Choi in return for favors.

An independent counsel team is currently looking into the possible links between Samsung and Choi, summoning top executives of the conglomerate.

Samsung Vice Chairman Lee Jae-yong has been banned from leaving the country.

By Kim Young-won (wone0102@heraldcorp.com)