April 26, 2024

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[THE INVESTOR] South Korean businesses remained silent on March 31 over the court’s ruling to arrest former President Park Geun-hye, fearing its impact on the upcoming trials over their dubious ties to her.

An official trial of Samsung’s de facto leader Lee Jae-yong is set to begin on April 7 over allegations that he lobbied Park in exchange for business favors given to her longtime friend Choi Soon-sil. South Korea’s largest conglomerate is worried that the court’s decision to put the former president behind bars could have negative ramifications on Lee’s trial, according to local reports quoting insiders.

Lee, also detained since February, has pleaded not guilty, claiming that he was forced by Park to provide 43.3 billion won ($38.6 million) to organizations set up by Choi and her family, with no expectations in mind. But with Park arrested, Samsung is worried that Lee’s trial could go on longer than expected or that the vice chairman could face the trial together with Park and others indicated over the bribery allegations.

Arresting Park, the central figure of a scandal that led to her impeachment last month, is expected to give more room for the prosecution to move forward to investigate other business tycoons involved in the scandal.

The prosecution has grilled SK Chairman Chey Tae-won over allegations that the group offered funds to Choi’s organizations in exchange for a presidential pardon. The nation’s food and entertainment giant CJ also faces allegations that it had agreed to invest 1 trillion won into K-Culture Valley, a theme park business promoted under Park’s policy drive on cultural prosperity, in return for the ex-president’s leniency toward the group’s Chairman Lee Jay-hyun who was sentenced to jail but pardoned last year.

Investigators said on March 31 that they could question Lotte Chairman Shin Dong-bin over bribery allegations, “if needed.”

By Cho Chung-un/The Korea Herald (christory@heraldcorp.com)