Samsung boss named as suspect in South Korea corruption scandal

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Sharecast News | 11 Jan, 2017

Updated : 13:51

South Korea's unprecedented investigation into government corruption has led to Samsung boss Lee Jae-yong being named as a suspect, just weeks after the impeachment of the country's President Park Geun-hye.

In December the South Korean tech giant admitted to donating around £16m to organisations linked to the key person-of-interest in the case, Choi Soon-sil.

Lee is the current de-facto head of Samsung Group, and a co-vice chair of Samsung Electronics, the world's largest maker of smartphone and tablet devices.

Lee admitted that Samsung had given money to help the equestrian career of Choi's daughter, including the purchase of a horse valued at around $850,000.

The large scale investigation has so far already included the questioning of two of Samsung's highest executives.

Lee was expected to be questioned in relation to the case also, but his naming as a suspect has come as a surprise.

Samsung has been accused by authorities in the country of giving large donations to non-profit foundations operated by Choi. She has been charged with coercion, bribery and attempted fraud.

Park was impeached by lawmakers in the country after months of accusations that Choi, a close friend of the former prime minister, had used her influence to impact on key business and political decisions in the country.

Specifically, the case involving the executives surrounds a controversial merger between Samsung C&T, its construction arm, and affiliate company Cheil Industries. The deal was agreed despite widespread opposition from shareholders.

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