Company - - Nov 14,2016
Samsung offices were raided by prosecutors in Seoul, South Korea, while authorities are investigating a corruption probe against the country’s president, Park Geun-Hye.
Samsung, world’s leading manufacturer of smartphones and household electronics is under allegations that it gave money to the daughter of Choi Soon-Sil, a close friend to the president. Ms. Choi is accused of using the money in politics and solicit Korean business donations for foundations that were under her control.
Prosecutors are investigating allegations that Samsung had provided $3.1 million to a company that Ms. Choi and her daughter co-owned in Germany. They also raided the office of Korean Equestrian Federation (KEF) and confiscated documents related to Samsung’s business with KEF.
The news was initially reported by local media and later Samsung confirmed it without giving any further information. Samsung, already reeling from the disaster that surrounds its Galaxy Note 7 smartphone may suffer another blow in the international market after this incident.
Ms. Choi was arrested on 3rd November with charges of fraud and misuse of power. President Park has apologized publically for the scandal but thousands of people are gathering and protesting in demand of her resignation.
It is the first time in eight years that the headquarters of country’s largest company have been raided. Last week, Samsung’s executive director also had to testify on suspicions that Choi with the help of a former presidential secretary had forced two local companies to give donations to some non-profit organizations. It is also believed that Choi illegally allocated part of these funds.
Ms. Park became the first female president of South Korea in 2012 and now she is left with an approval rating of only 5%. She has already named a new prime minister and reorganized her cabinet but opposition parties call for her resignation or impeachment.