Scandal shakes Samsung
SEOUL, South Korea (AP) - April 11, 2008 Samsung Chairman Lee Kun-hee emerged from a second round of
extensive questioning over allegations of bribery and other shady
dealings at the company.
"I will deeply think about reshuffling the corporate management
structure and the management lineup, including myself," Lee
haltingly told reporters.
Pressed if that meant he would resign, Lee said he "will think
about it."
The government sanctioned investigation began in January,
spurred by allegations from a top Samsung attorney who had left the
company.
Kim Yong-chul claimed that the conglomerate had a $205 million
slush fund used to bribe prosecutors and judges. He also alleged
that Lee's wife, who heads a Samsung art museum, used some of the
money to buy expensive paintings from abroad.
Samsung Group immediately denied the allegations.
Lee, one of the nation's most influential executives, said he
assumed blame for the scandal and would "take full responsibility,
either morally or legally."
Samsung said afterward that Lee's statements were provisional
and depended on whether investigation uncovers any wrongdoing.
"His comment does not mean that the chairman himself or top
management will step down," the group said in a statement.
"Rather it means that if the special prosecution concludes that
there are problems, we will make necessary improvements."
Prosecutors, who have raided Samsung offices and questioned top
executives as well as Lee's family, have until April 23 to conclude
the probe.
Samsung is the parent to dozens of businesses, including Samsung
Electronics Co., a world leader in computer memory chips, flat
screen televisions and mobile phones.
Founded by Lee's father 70 years ago, the conglomerate also has
interests in shipbuilding, insurance and apparel, among other
industries. Samsung's construction arm is erecting in Dubai what it
touts as the world's tallest skyscraper.
Lee, who took over the company two decades ago, is credited with
making Samsung Electronics a top global brand by transforming its
corporate culture to focus on quality.
For years Samsung has fought allegations that it has used
dubious financial transactions to ensure that control of the
conglomerate passes from Lee to his son - allegations the
independent counsel is also examining.
--
Associated Press writers Hyung-jin Kim and Jae-hyun Jeong
contributed to this report.
