Truemors
66 year old Lee Kun-hee is and has for many years been the chairman of the South Korean Samsung corporation for two decades.
If Korean culture is anything like Chinese or Japanese culture - the high profile chairman has 'lost face,' with South Korea; the Samsung corporation; it's employees and with his peers.
At the centre of the inquiry is a slush fund, a $200m account, which Samsung staff allegedly used to bribe officials.
Earlier, South Korean media had reported that the fund was used to prevent investigations into management practices.
According to al-Jazeera, Lee has already apologised for the corruption scandal and said that he was willing to take responsibility for bribery allegations.
However, according to CNN.com, just yesterday he was still denying the allegations:
SEOUL, South Korea (AP) -- Samsung Group chairman Lee Kun-hee denied Friday that he ordered the creation of a slush fund at the center of a high-profile probe into alleged bribery by South Korea's largest business conglomerate.
Lee arrived at Samsung early this morning after having been questioned about the bribery claims that were raised last year by a former Samsung lawyer.
His interrogation lasted for 11 hours at the office of the independent counsel who are examining the claims.
Prior to being questioned by the prosecutor's office on Friday, Lee Kun-hee's face seemed framed in innocence:
"I didn't," Lee, shaking his head, said upon arrival for questioning by special prosecutors
Lee denied both the creation of the illegal fund and ordering the alleged bribery.
Samsung is South Korea's largest conglomerate and is accused of having created a slush fund worth $215 million, with which to bribe civil servants, prosecutors and judges.
After having been questioned again this morning by Cho Joon-woong (the chief investigator,) Lee backpedaled his denial, saying to waiting reporters:
"This is all due to my carelessness," Lee said. "I am responsible for everything and must take responsibility."
Lee, the chairman of South Korea's Samsung corporation, has apologised for a corruption scandal that has engulfed the company.
Lee said on Saturday that he was willing to take responsibility for the bribery allegations levelled against him.
Lee had faced an inquiry into the case for 11 hours on Friday.
At the centre of the inquiry is a slush fund, a $200m account, which Samsung staff allegedly used to bribe officials.
Earlier, South Korean media had reported that the fund was used to prevent investigations into management practices.
Volte face
The 66-year-old chairman of the Korean electronics conglomerate, softened his stance after undergoing intense questioning at a special prosecutor's office, just a day after he had accused the Korean media of spinning lies about Samsung.
"I feel deeply ashamed before the people for causing this disturbance over the Samsung issue,"[...]
"I will humbly accept the results of the special probe and do my best not to let this kind of things happen again.
"I should be blamed and held responsible for all these things. This is all due to my carelessness."
Asked by one particular reporter this morning if he was admitting responsibility for the allegations, Lee also said: "Some points, maybe. But not 100 percent."
Others that had to endure many hours of questioning, were Lee's wife, Hong Ra-Hee, who is the director-general of the Samsung Museum of Art and his son, an executive at Samsung Electronics Co.
Hong is allegedly accused of using some of the slush fund money to buy expensive international works of art, such as "Happy Tears" by the late pop artist, Roy Lichtenstein.
When I checked on ArtNet, I was disappointed to find out that the final auction bid had been made by telephone - I had wondered if I'd see Hong's name or the museum mentioned as the buyer.
Regardless, investigators should easily be able to subpoena such information, either clearing or definitely implicating Hong Ra-hee.
Roy Lichtenstein's Happy Tears (1964), a large comic-style portrait of a red-headed woman whose eyes are brimming with tears, sold to a telephone bidder for $7,159,500 (est. $5 million-$7 million). The price is a new auction record for the artist; Lichtenstein's previous record, $6,050,000, was set at Christie's back in 1990. The work was being sold by Philadelphia collectors
It's very interesting to note and keep in mind here, that this is not the first time that Lee has appeared before state prosecutors.
1995 saw Chairman Lee and seven other conglomerate chiefs also convicted of presidential bribes. However, Lee only received a suspended sentence.
Prosecutors are also investigating whether control of the company was illegally transferred from Lee to his son.
Prosecutor Cho Joon-woong has until April 23rd, 2008 to finish collecting and collating all the evidence.
I'm sure the outcome will be very interesting.
Sources:
Al Jazeera
Samsung Chief 'Ashamed' by Scandal
(no byline)
CNN.com/World Business
Samsung Chief Denies Corruption Charges
AP
ArtNet
Art Market Watch
BBC News
Prosecutors Question Samsung Boss
(no byline)
Associated Press
Samsung Chief Questioned for 11 Hours
by Kelly Olsen
Al Jazeera
Photo by Gallo/Getty
ArtNet
Art Market Watch - Roy Lichtenstein's Happy Tear
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