Seoul - Special South Korean prosecutors
questioned the head of top conglomerate Samsung Group
on suspicion of bribery on Thursday in an influence-peddling
scandal that led to President Park Geun-hye's impeachment.
Park remains in office but has been stripped of her powers
while the Constitutional Court decides whether to uphold the
December impeachment and make her the first democratically
elected leader to be forced from office.
Park has denied wrongdoing.
"I am very sorry to the South Korean people for not showing
a better side," Samsung Group leader Jay Y. Lee told reporters
as he arrived at the prosecution office in a black sedan,
greeted by protesters holding signs calling for his arrest and
accusing him of being the president's accomplice.
Investigators would now decide whether to seek an arrest
warrant against Lee, 48, special prosecution spokesman Lee
Kyu-chul told reporters.
Parliament impeached Park over allegations she allowed a
friend, Choi Soon-sil, to exert inappropriate influence over
state affairs.
Choi is accused of colluding with Park to pressure big
businesses, including the Samsung Group, to contribute to
non-profit foundations backing the president's initiatives.
Choi, in detention and on trial on charges of abuse of power
and attempted fraud, has denied wrongdoing.
Prosecutors named Lee a suspect on Wednesday and are
investigating whether Samsung gave 30 billion won ($25.28
million) to a business and foundations backed by Choi in
exchange for the national pension fund's support for a 2015
merger of Samsung C&T Corp and Cheil Industries Inc.
Lee in December denied accusations the conglomerate sought
to curry favour with Park or Choi to secure the 2015 merger, a
deal seen as critical for ensuring family control of the
conglomerate as generational succession looms.
Wearing a dark suit, white shirt and dark red tie, Lee bowed
after making brief remarks to reporters. A Samsung Group
spokeswoman declined to comment on the investigation.
Proving improper dealings between Park, or Choi, and Samsung
would be key for the prosecutors' case, analysts said, noting
their goal was to prove Park or her surrogates took bribes from
corporations in exchange for favours.
The special prosecution spokesman said investigators were
also looking into whether Lee lied during a December
parliamentary hearing about Samsung's involvement in the
scandal, as well as whether he could be charged with breach of
trust or embezzlement.
Investigators questioned two senior Samsung Group executives
this week as witnesses.
The special prosecution has not begun investigations into
any other conglomerates. Dozens of South Korean corporate groups
made contributions to the two foundations, but Samsung's
donations were the largest.
National interest
The scandal has triggered weekly rallies calling for Park to
step down. She has apologised and said this month the pension
fund's support for the Samsung companies' merger was in the
national interest.
If Park were to leave office, a presidential election would
be held within 60 days. Among the expected contenders is former
U.N. Secretary-General Ban Ki-moon.
Lee took over as leader of the
smartphones-to-pharmaceuticals conglomerate after his father,
founding family patriarch Lee Kun-hee, had a heart attack in
2014.
Jay Y. Lee's arrest or indictment would be a blow to Samsung
and the family, which has been streamlining its business to
ensure a stable transfer of control from the ailing Lee Kun-hee
to his children.
While analysts and investors said management would be able
to keep the various affiliates including Samsung Electronics Co
Ltd in good shape, the conglomerate as a whole may
be slower to commit to major investments or acquisitions should
Jay Y. Lee be imprisoned.
Some also said Samsung and the Lee family may lose
credibility among investors.
"A corruption scandal is the most embarrassing thing for a
pension fund like us," said Park Yoo-kyung, a Hong Kong-based
director for Dutch pension fund APG Asset Management, which
holds shares in Samsung Electronics.
"We have an obligation to invest in a clean company."
Share prices of most Samsung companies have shown muted
reaction to Lee's implication in the scandal, however. Samsung
Electronics shares rose 1.4 percent to a record high 1.94
million won on Thursday and Samsung C&T shares
gained 1.6 percent, compared with a 0.6 percent rise for the
broader market.
"It's possible that Samsung Group companies will try to
behave more transparently in response and operate in a more fair
manner that shareholders can rationally understand," said IBK
Asset Management fund manager Kim Hyun-su.