Scandal hearings put South Korea tycoons in hot seat
SOUTH Korea lawmakers yesterday kicked off an unprecedented series of hearings that will see the country’s business elite grilled over a corruption scandal engulfing impeachment-threatened President Park Geun-hye.
The powerful heads of familyrun conglomerates, or “chaebols”, such as Samsung and Hyundai will be among those testifying before a parliamentary investigation ahead of an impeachment vote to remove the president on Friday.
The hearings opened on the back of a series of mass anti-Park demonstrations in Seoul that have seen millions of people take to the streets.
Park is accused of colluding with her long-time friend, Choi Soon-sil, to strong-arm giant corporations into “donating” nearly $70 million to two dubious non-profit foundations.
Choi has been indicted for coercion and abuse of power, and is accused of syphoning some of the donated funds for personal use. She denies all criminal charges.
Choi had been summoned for questioning at the televised hearings, but made it clear yesterday she would absent herself, citing health grounds. Lawmakers said she faced jail time for contempt if she failed to appear.
Today’s testimony will be devoted to interrogating the corporate tycoons, including Sam- sung group scion Lee Jae-yong, Hyundai chairman Chung Mong-koo and seven heads of other conglomerates like LG, Lotte, Hanjin and CJ.
They are among the wealthiest and most powerful people in the country, but the “Choi-gate” scandal has taken the lid off simmering public resentment over their influence and perceived sense of privilege at a time of slowing economic growth.
Samsung – the South’s largest business group – made the biggest contributions of 20 billion won ($17 million) to Choi’s foundations, followed by Hyundai, SK, LG and Lotte.
Prosecutors have raided the headquarters of Samsung and other groups for any evidence they received policy favours in exchange for their contributions. Samsung is separately accused of funnelling millions of euros to Choi to bankroll her daughter’s equestrian training in Germany.
As part of the widening probe, prosecutors are also investigating whether Samsung lobbied officials at the state pension fund for their support over a contested merger deal last year.
Park has not been summoned for questioning by lawmakers.
In order to secure the required two-thirds majority, the opposition impeachment motion will need the support of more than two-dozen lawmakers from Park’s ruling Saenuri Party.