Samsung In Corruption Investigation

Technology company Samsung could be subjected to further scrutiny over allegations of corruption following a decision by the South Korean parliament to allow investigations to continue into certain of the company’s dealings.

The technology giant, now widely considered a market leading force within many of its core domains, has been accused of bribing public officials and high ranking police officers not to investigate certain of its practices, which has been highlighted as a major cause for concern in light of South Korea’s high profile fight against corruption in business.

Another fundamental point of examination regards alleged illegal donations made by Samsung to presidential candidates in the run up to the 2002 election in South Korea, along with allegations of a ring-fenced slush fund established solely to fund bribes following a former company executive’s public comments about the company.

The move follows an ongoing drive to route out corruptive business practices, which the South Korean government has motioned for in order to restore public confidence in the commercial trading environment within the country. In February of this year the former Chairman of Hyundai was handed a custodial three year sentence for financial crimes including fraud, embezzlement and breach of statutory duty by the South Korean courts.

Citigroup were also involved in the clampdown on corruption, subject to a dawn raid at their South Korean office following allegations of foul play in a deal with a US investment fund over the acquisition of a South Korean bank.

Speaking today on the move, a Samsung spokesperson said it was unfortunate that the investigation was taking place so publicly and at a time when the group was facing difficult market conditions, although it rigourously denies any involvement in the alleged wrongdoings.

Story link: Samsung In Corruption Investigation