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Activists to campaign against Samsung probe findings
Fri, Apr 18, 2008
AFP

SEOUL - SOUTH Korean activists said on Friday they would launch a nationwide campaign calling for a new probe into corruption allegations against the nation's largest business group Samsung.

An association of some 50 civic groups rejected the findings of a three-month probe by a special prosecutor, alleging it covered up wrongdoing by group chairman Lee Kun Hee and his associates.

'We launch a national resistance campaign to push for the irregularities and corruption involving Samsung's Lee Kun Hee and his relatives to be dealt with sternly under laws and priciples,' the activists said in a joint statement.

The People's Solidarity for Participatory Democracy and two other activist groups said their campaign would include new legal action against Samsung, and a series of statements urging the reopening of the case.

The special prosecutor leading the inquiry on Thursday charged chairman Lee with tax evasion and breach of trust. But Mr Lee was cleared of bribery, the main claim made by a former Samsung chief lawyer turned whistleblower who had prompted parliament to call for the probe.

The prosecutors said Mr Lee, 66, would remain free pending trial, as would nine other executives including vice chairman Lee Hak Soo who were also indicted.

The activists said the inquiry was used to give Mr Lee and his subordinates an indulgence for wrongdoing.

'In order for Samsung to be born again, all its past wrongs must be revealed and legal and social consequences must follow,' it said, urging Mr Lee and his son to step aside from management and let 'professionals' run group subsidiaries independently.

Samsung says it is preparing reform plans to be announced next week.

Analysts said these were expected to include corporate governance reforms, especially changes to Samsung's powerful strategic planning office. It allegedly played a key role in managing Mr Lee's hidden assets and the dubious transfer of control over the group to the son.

Samsung is also expected to announce massive social responsibility programmes such as donations to social welfare funds.

 

 
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