Friday, April 11, 2008

Samsung chairman arrives for questioning


SEOUL, South Korea (AP) -- Samsung Group Chairman Lee Kun-hee arrived Friday for a second round of questioning by an independent counsel probing allegations of bribery and other wrongdoing at South Korea's biggest industrial conglomerate.

Lee, 66, appeared at the office of the special prosecutor for the second time in a week, though did not speak to reporters. He was summoned the first time last Friday and was questioned almost 11 hours.

The independent counsel, sanctioned by South Korea's National Assembly and former president, began its probe in January. Investigators have until April 23 to collect evidence.

Kim Yong-chul, a former top lawyer for Samsung, claimed in November that the conglomerate had 200 billion won ($205 million, 130 million euros) in a slush fund and used it 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 denied Kim's allegations when they were raised.

Lee told reporters upon arrival for questioning a week ago that he did not order the creation of the alleged slush fund or direct that any bribes be paid.

Upon emerging early Saturday morning, Lee said "not 100 percent" when asked by reporters if he admitted to the principal allegations during questioning.

He also said he was "responsible for everything." It remains unclear if he was admitting specific wrongdoing or making a general statement of responsibility for the scandal as the conglomerate's top official.

Samsung Group is a massive conglomerate consisting of dozens of businesses. It has interests in industries including electronics, shipbuilding, construction, insurance and leisure.

Lee, who has led the group for 20 years, is credited with turning Samsung Electronics Co., its flagship enterprise, into a top global brand. His late father established the conglomerate 70 years ago.

Besides the slush fund, bribery and art claims, investigators are looking into long-simmering allegations of murky dealings involving the family-run group's complex ownership structure.

South Korean conglomerates, known as "chaebol," have long been accused of influence-peddling as well as dubious transactions between subsidiaries to help controlling families evade taxes and transfer wealth to heirs.

Special prosecutors questioned Lee's wife for more than six hours last week. His son, an executive at Samsung Electronics, brother-in-law and senior Samsung Group officials have also endured hours of questioning

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