Samsung chairman raided

Author: Gareth Halfacree
Published: 15th January 2008
Comments (4) Stumble
Lee Kun Hee, chairman of Samsung and, if reports are right, a very naughty boy.

Lee Kun Hee, chairman of Samsung and, if reports are right, a very naughty boy.

According to a report in the New York Times, the chairman of South Korean technology giant Samsung, Lee Kun Hee, has had his office raided by special prosecutors investigating claims that Lee had been amassing a 'slush fund' which he used to bribe politicians, prosecutors, and other government officials.

As well as the office complex in Seoul, the prosecutors performed simultaneous raids on the houses of the chairman's top two aides who stand accused of helping Lee in his actions, as well as five other executives including vice chairman Lee Hak Soo.

Kang Dong Joo, one of the investigators involved in the raids, is reported as saying that the raids “were necessary to collect evidence.”

The catalyst for the investigation appears to have been the Lee family's insistence on a traditional father-to-son transfer of control of the company. Kim Yong Chul, former legal adviser to the corporation, has accused Lee of bribing officials to ensure that his son, Lee Jae Yong, was granted control of the corporation.

Many of Kim's accusations have been proven by investigators, with the senior state prosecutor involved in the case stating that “a significant amount of secret funds has been found” and that the “basic outline of [Kim's] allegations is confirmed”.

If proven the accusations could pose a problem not only for Samsung but also for South Korea itself, with the corporation controlling a massive one-sixth of the country's entire gross domestic product.

Samsung has yet to comment on the raids.

Is nepotism alive and well in South Korea, or should the company be left alone to produce the gadgets we've grown to love? Let us know your opinion on the case over in the forums.
Quote Naberius 15th January 2008, 11:33
Fancy taking the risk when you are lucky enough to be runing such a company anyway.
Quote mrb_no1 15th January 2008, 12:53
imo luck has nothing to do with running a company like that. Hard work, risks and favours are what get you there, except for a few *Lee Jae Yong was hoping anyways* :P. Its a shame that cultural tradition pushed him to break the law so severely, ironic too i find. Who knows with Samsung having soo much power in Korea, Lee Kun Hee might just get away with a slap on the wrists with an acceptance of early resignation. My thoughts are that if it has been allowed to go so far as to allow him to be raided, if he is found guilty he's going to get pooped on as Samsung's share price/company wealth/certainty will take a hammering from the news anyways, but still i dont know enough about it to make an informed comment, just some ideas that spring to mind initially.

peace
Quote outlawaol 16th January 2008, 08:07
Im selling all my samsung products! *cries* they LIED TO ME, TO MEE!

:P

Just kidding, my samsung products are NOT for sale. *Smacks all the samsung fanboys*
Quote centy 16th January 2008, 08:22
lol, he's not the messiah/chairman of Samsung.

He's a very naughty boy.
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