Samsung Linked to a Political Scandal
The South Korean based tech giant again makes the headlines as it is now linked to a political scandal. This time involving the South Korean President, Park Geun-hye. The recent pickle with blowing up Note 7 had already tainted multinational conglomerate company’s repute. Followed by the Seoul-based company recalling all Note 7′ sold, due to “Safety Concerns”. Reportedly Samsung lost billions as investors pulled out. Which is estimated to cost the company more than $6 billion.
Amid the blown-up phones, Samsung’s Cooperate headquarters was raided by investigators and law enforcement agencies.
“South Korean prosecutors entered the offices of Samsung. They searched for evidence the smartphone maker illegally provided gifts for a confidante of President Park Geun-hye that is at the centre of an influence-peddling investigation. The company confirmed the raid and declined to comment further.”
South Korean President
Allegedly South Korean president Park Geun-hye was influenced by Choi Soon-sil, a daughter of a former religious cult leader.
Choi Soon-sil is alleged to have used her closeness to the president to meddle in state affairs. Also, wielding influence in the sports and cultural communities.
Prosecutors have been investigating an allegation that Samsung provided millions to a company co-owned by a confidante of the South Korea president. To be exact, about $3.1m is the alleged amount.
Kim Sang-Jo, Executive Director of the Community Group Solidarity for Economic Reform:
“Demands for Samsung to improve its management structure will intensify among institutional investors and personal investors. And even among civic groups like mine.”
“Prosecutors visited our office in Seoul yesterday. We have no further comment”.
It’s not the first time Samsung has been a topic of malpractices. The Samsung crisis continues in yet another direction testing Samsung’s heir apparent. Samsung has a long history of corruption. It will be interesting to see how this story develops.