Scandal hearings put South Korea tycoons in the hot seat
SOUTH Korean politicians started an unprecedented series of hearings yesterday in which the country’s business elite will be grilled over a corruption scandal engulfing impeachment-threatened President Park Geun-Hye.
The powerful heads of familyrun conglomerates, like 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.
Park is accused of colluding with her long-time friend, Choi Soon-Sil, to strong-arm giant corporations into donating nearly $70-million (R968-million) to two dubious non-profit foundations.
Choi has been charged with coercion and abuse of power, and of siphoning some of the donated funds for personal use. She denies all charges. Choi had been summoned for questioning at the televised hearings, but said yesterday she could not attend, citing health grounds.
She faces prison time for contempt, if she does not appear.
Testimony today will be devoted to interrogating the tycoons, including Samsung group scion Lee Jae-Yong, Hyundai chairman Chung MongKoo and seven heads of other conglomerates like LG, Lotte, Hanjin and CJ.
They are among the wealthiest and most powerful people in South Korea, 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.
According to company sources, many of them have been going through frantic preparations to avoid any public humiliation.
Heads of conglomerates are not use to being questioned or held accountable – even to their shareholders.
“It is part of the deep-rooted, twisted corporate culture in South Korea to treat founding family members as if they are royalty,” Shim Jung-Taik, an author of several books on Samsung and its corporate culture, said.
“None of them would have attended these hearings in normal times. But the public fury shown at recent mass rallies was too much to ignore – even for these royals,” Shim said.
Samsung made the biggest donations, $20-billion (R276-billion), to Choi’s foundations, followed by Hyundai, SK, LG and Lotte.
Prosecutors have raided Samsung’s headquarters and other groups for any evidence that they received policy favours in exchange for the contributions.
Samsung is separately accused of funnelling millions of euros to Choi to bankroll her daughter’s equestrian training in Germany.
Prosecutors are also investigating whether Samsung lobbied officials at the state pension fund for their support over a contested merger deal last year.
To secure the required twothirds majority, the oppositionsponsored impeachment motion will need the support of more than two dozen politicians from Park’s ruling Saenuri Party.