Nine heads of South Korea's major conglomerates wait at a parliamentary committee on Tuesday. [Yonhap Photo]
The heads of South Korea's nine powerful conglomerates were dragged into a parliamentary investigation Tuesday to testify about their role in a corruption scandal engulfing President Park Geun-Hye who faces a humiliating impeachment vote this week.
The televised investigation focused on whether the business leaders have sent corporate money for Park's longtime friend, Choi Soon-sil, against their will or in return for favors.
Despite her persistent claims that she has never received any personal gains in the scandal, the president is accused of colluding with or helping Choi and her relatives amass great treasures and of passing over their illegal activities.
The parliamentary hearing, which drew widespread public attention, came on the heels of huge weekly anti-government demonstrations calling for Park's ouster and arrest. It's the first time South Korea's top business tycoons, including Samsung's media-shy de facto leader Jay Y. Lee, have been grilled together in public.
No business leaders have been charged in an extensive probe by state prosecutors, but the scandal fanned public resentment over their alleged relationship with the administration of Park Geun-hye who took office in early 2013 as South Korea's first female president.
The youngest of all was Samsung Electronics Vice Chairman Jay Y. Lee, who has virtually ruled the country's largest conglomerate on behalf of his bedridden father and group patriarch Lee Kun-hee.
Samsung has sent the biggest amount of money estimated at 30 billion won to Choi, relatives, and associates. It is also suspected of bankrolling an equestrian training program for Choi's daughter in Germany.
Choi, indicted on charges of coercion and abuse of power, is accused of collecting some 70 million US dollars fo her dubious non-profit foundations. But questions remain whether corporate donations were made voluntarily without strings attached.
Corporate donations, voluntary or not, have long been a controversial issue in South Korea due to concern about collusive ties between businessmen and politicians.
[Courtesy of Joint Press Corp.]
State prosecutors have cleared the business groups of bribery charges, saying they had donated money against their will to avoid retaliation and disadvantage. The organizers of weekly candlelit rallies, however, want the punishment of Park and business leaders for bribery.
Seongnam City Mayor Lee Jae-myung, a potential opposition presidential candidate, said the conglomerate chiefs should be punished for contributing to corruption. "The root of corruption is chaebol," he said. "Along with (Presiden) Park Geun-hye, chaebol leaders should be brought to justice for stern punishment."
At Tuesday's hearing, the tycoons expressed regret over their ties with Choi but stressed no strings have been attached to their cash donations.
GS Group head Huh Chang-soo, who leads the Federation of Korean Industries, a lobby group of conglomerates, said companies had no other choice but to follow governmental guidelines and requests.
The scandal has aggravated economic woes with Asia's fourth-largest economy reeling from a prolonged economic slowdown, sluggish exports, and a corporte overhaul that has already seen the collapse of South Korea's largest container carrier, Hanjin Shipping.
South Korea is now in a state of policy paralysis, with its control tower unable to execute state affairs and tackle economic problems properly. If Park clings to power, impeachment will take as much as six months.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
