South Korea prosecutors question Samsung CEO over corruption allegations

[JURIST] South Korean prosecutors Friday questioned Samsung [corporate website] Chairman and CEO Kun-Hee Lee [corporate profile] about allegations of corruption, including accusations that Samsung maintained a $200 million slush fund to bribe prosecutors, judges and civil servants. Former Samsung lawyer Yong-Chul Kim first raised the allegations in November 2007, but Samsung and Lee have denied that such a fund exists. Prosecutors are expected to complete their investigation later this month. BBC News has more. AP has additional coverage.

Samsung, South Korea's largest corporation, has been the center of numerous legal battles over the past few years. In May 2007, a South Korean appellate court upheld the conviction of two Samsung executives connected with illegal stock trading [JURIST reports]. In April 2007, another Samsung executive pleaded guilty [US DOJ press release; JURIST report] to US charges of conspiring to artificially inflate the cost of Dynamic Random Access Memory (DRAM), affecting the price of personal computers worldwide. In 2005, Samsung reached an agreement [JURIST report] with the US Department of Justice to plead guilty to charges that it conspired with other technology companies to fix prices on DRAM chips.



 

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