Tech

South Korea: Samsung Raided Amid Corruption Probe

Published

8 years ago

November 8, 2016

South Korean prosecutors investigating a confidante of President Park Geun-gye for corruption have searched the offices of electronics giant Samsung, according to local media.

The world’s largest manufacturer of smartphones, televisions and memory chips is suspected of having secretly funded the sports activites of the daughter of Choi Soon-sil, Park’s friend, it was reported on Tuesday.

Samsung, which is already reeling from the disaster surrounding its flagship Galaxy Note 7 smartphone, confirmed that its offices had been raided but gave no further details.

The company is suspected of having transferred $3.1m to a company owned by Choi in Germany. The money was allegedly used to pay for training for her daughter, a dressage rider.

Corruption in Seoul?

Park is facing a growing scandal over Choi’s alleged influence on state affairs despite her having no official position in the government, with tens of thousands of protesters in Seoul at the weekend demanding Park’s resignation.

Choi has been arrested on charges of fraud and abuse of power.

Inside Story – Will South Korea’s president be forced out of office?

The charges relate to allegations that Choi leveraged her personal relationship with Park to coerce donations from large companies like Samsung to non-profit foundations she set up and used for personal gain.

She is also accused of interfering with government affairs, including the nomination of senior officials.

Reports of the unhealthy influence Choi wielded over Park have sent the president’s approval ratings plunging to record lows and led to mass street protests calling on her to resign.

In a bid to restore public trust, Park reshuffled her advisers and senior cabinet members, and nominated a liberal candidate for prime minister from outside her conservative Saenuri Party.

But opposition parties had pledged to block her nominee on the grounds they were not properly consulted.

During their meeting, Chung Sye-kyun, parliament speaker, told Park that her biggest priority should be to alleviate widespread public concern and anxiety.