Samsung chief appears for 2nd round of questions in graft probe

Lee Jae-yong vice chairman of Samsung Electronics, arrives to be questioned as a suspect in a corruption scandal that led to the impeachment of President Park Geun-Hye, at the office of the independent counsel in Seoul

Lee Jae-yong vice chairman of Samsung Electronics, arrives to be questioned as a suspect in a corruption scandal that led to the impeachment of President Park Geun-Hye, at the office of the independent counsel in Seoul

Published Feb 13, 2017

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Seoul - Samsung Group leader Jay Y. Lee

appeared at the South Korean special prosecutor's office for

questioning on Monday as part of a wider investigation into an

influence-peddling scandal that could topple President Park

Geun-hye.

The special prosecutor has focused on South Korea's biggest

conglomerate, accusing Lee in his capacity as Samsung chief of

pledging 43 billion won ($37.31 million) to a business and

organisations backed by Park's friend, Choi Soon-sil, in

exchange for support for a 2015 merger of two Samsung companies.

The funding included sponsorship for the equestrian career

of Choi's daughter, who is under arrest in Denmark after being

sought by South Korean authorities.

Park, Lee, Choi, and Samsung Group have all denied

bribery accusations.

Proving illicit dealings between Park or her confidantes and

Samsung Group is critical for the special prosecutor's case that

ultimately targets Park, analysts have said.

Park was impeached by parliament in December and South

Korea's Constitutional Court will decide whether to uphold that

decision. She has been stripped of her powers in the meantime.

Lee arrived at the prosecution office in southern Seoul

early on Monday in a black sedan, dressed in a dark blue suit

and tie and flanked by Samsung Group officials and his lawyer.

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"I will once again tell the truth to the special

prosecution," Samsung Group's third-generation leader told

reporters before entering an elevator. He gave no details.

Outside the prosecutor's office, protesters held up signs

calling for his arrest.

Executives questioned

The special prosecution team said investigators were

questioning two other Samsung executives as suspects. Both are

officers of the Korea Equestrian Federation and have been

questioned previously in the case.

One of those two, Samsung Electronics president Park

Sang-jin, did not respond to reporters on his arrival at the

special prosecution team's office.

Lee Kyu-chul, spokesman for the special prosecution office,

told a news briefing the office would decide soon whether to

make a second arrest warrant request for the Samsung Group

chief. He did not comment on other details, including what Jay

Y. Lee, 48, during Monday's questioning.

Spokesman Lee said prosecutors would also consider whether

to seek arrest warrants for four other Samsung Group executives

identified as suspects. The prosecutor's office had previously

said it would not seek arrests for any Samsung executives other

than Jay Y. Lee.

In January, the special prosecution sought a warrant to

arrest Samsung chief Lee after questioning him for more than 22

hours, accusing him of paying bribes to win the state pension

fund's support for the controversial merger of Samsung C&T Corp

and Cheil Industries Inc.

However, a Seoul court rejected that request.

Chang Choong-ki, deputy head of Samsung Group's corporate

strategy office, known informally as its "control tower", was

also questioned as a suspect on Sunday and returned home hours

later.

Shares in Samsung Electronics were down 0.9 percent by 0600

GMT on Monday, compared with a flat wider market.

"The issue will have limited impact on share prices, except

if the worst-case scenario happens, since political issues

previously did not have a big influence on share prices or

earnings," said Bae Sung-young, a stock analyst at Hyundai

Securities.

REUTERS

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