April 19, 2024

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[THE INVESTOR] Two top executives of Samsung Group were summoned on Jan. 9 by investigators probing the influence-peddling scandal involving impeached President Park Geun-hye and her imprisoned confidante Choi Soon-sil.

The independent counsel team, which is ratcheting up its efforts to find links between the two and Samsung Group, summoned Choi Gee-sung, who heads the firm’s de facto control tower Future Strategy Office, and Chang Choong-ki, the deputy chief of the office, in the morning.

 

Choi Gee-sung

They were called in as witnesses, but there is still a chance that they will be grilled as suspects.

The two executives, allegedly under the orders of Samsung Vice Chairman Lee Jae-yong, played a key role in signing a 22-billion-won (US$18.30 million) contract with Core Sports in 2015, a paper company run by Park’s crony, to support six dressage athletes.

Of the 22 billion won, Samsung offered 8 billion won to imprisoned Choi’s daughter Jung Yu-ra from September to October in 2015 and 1.6 billion won to a youth sports club owned by her niece Jang Si-ho.

The investigation team suspects the funds were aimed at winning favors from the president’s long-time friend.

Choi is suspected of having exerted her influence in government organizations to help Samsung to complete the merger between the conglomerate’s two affiliates, Samsung C&T and Cheil Industries in July 2015, which had faced opposition from some investors including hedge fund Elliott Management.

The merger was thought to be crucial to the power transition from bedridden Samsung Chairman Lee Kun-hee to his son Jae-yong,

Pressured by Choi, the National Pension Service, one of the largest stakeholders of Samsung C&T, allegedly cast a vote in favor of the merger at a shareholders meeting.

According to some news reports, the Samsung vice chairman will likely be summoned in the coming weeks after the investigators collect solid evidence to prove the collusion between Samsung and Choi.

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