Samsung embroiled in donations probe

Samsung, South Korea’s largest conglomerate, funnelled nearly €11.4m in illegal donations to the campaign of an opposition presidential candidate last year, prosecutors said today.

Prosecutors investigating how much money big businesses gave to candidates ahead of the December poll, alleged Samsung provided the funds to Lee Hoi-chang’s unsuccessful campaign in neat bundles of bonds.

“We will see how the investigation will develop,” said Kim Joon-shik, a Samsung executive. “At the moment we don’t have any comment.”

The allegation comes days after Suh Jong-woo, a former legal adviser for Lee, was arrested on charges of meeting an executive from LG, South Korea’s second biggest conglomerate, at a petrol station late last year and collecting a similar sum.

He is suspected of delivering the money to Lee’s campaign office in violation of political funding laws. Lee, who lost to President Roh Moo-hyun by a thin margin, has denied wrongdoing.

After his election defeat, Lee quit as head of the opposition Grand National Party.