Samsung slush fund: sludge or substance?
Kim Yong-cheol, a former top legal affairs official from 1997 to 2004 at Samsung Group, continues to make allegations about the company, most recently claiming that it set up a $215 million (200 billion won) slush fund to bribe influential figures that include judges, prosecutors, politicians and lawmakers.
His claims are being taken seriously in South Korea, where the National Assembly approved legislation to open an independent investigation into the allegations. According to reports, a similar probe already launched has been compromised by Kim’s claims that some of the nation’s top prosecutors took bribes.
Samsung, of course, is denying such a slush fund, telling the Associated Press that the allegations are “nothing but a repeat of false, distorted and exaggerated claims.” Samsung also said it is planning legal action against Kim because of the allegations.
The National Assembly legislation will have to get President Roh Moo-hyun’s approval before such an investigation can begin, but his office can veto it as state prosecutors have already launched a probe. If President Roh Moo-hyun’s office does veto the bill, expect further allegations to fly. Samsung had been accused of improperly sending the president money as a congratulatory gift for his 2002 election win; Roh has denied this.
Electronic News could not reach Samsung for comment by press time.
What are your thoughts? Is this a case of an ex-employee slinging mud or is there substance to Kim’s claims? Post your comments below.
–Suzanne Deffree, Managing Editor, News
For more on this news see:
Legal insider says Samsung kept $216M slush fund
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