SKorean business leaders humbled over political scandal

By Alex Jensen

SEOUL (AA) - South Korea’s most powerful tycoons were being questioned at a parliamentary hearing Tuesday, with Samsung vice chairman Lee Jae-yong admitting to feeling “embarrassed” at his link to an ongoing scandal engulfing the Blue House, Seoul’s presidential office.

The National Assembly’s interrogation of the leaders of the country’s nine biggest conglomerates is unprecedented, and precedes Friday’s planned vote on whether to impeach President Park Geun-hye over multiple allegations.

Among the most serious claims against Park is the charge that she helped pressure businesses to make donations in return for favors -- money allegedly made its way to the president’s secret confidante Choi Soon-sil via two nonprofit foundations.

The executives face no official charges but were being given a tough time by lawmakers fueled by a public backlash against high-level corruption after a record 2.3 million people demanded Park’s immediate resignation last weekend.

Ahead of the afternoon’s continued questioning of the tycoons -- from Samsung, Hyundai Motor, SK, LG, Lotte, Hanwha, Hanjin, CJ and GS -- none of them had admitted to buying favors.

Samsung’s representative did concede to giving a horse worth a billion won ($856,030) to the equestrian daughter of the president’s friend Choi.

“I am embarrassed to be involved in the incident,” the conglomerate’s heir-apparent Lee said. “We should have been a better example as a South Korean company.”

The vice chairman, appearing instead of his ailing father, denied being asked for money during meetings with Park -- although Samsung was at the top of the business donor’s list with more than 20 billion won ($17.46 million).

“Local companies face challenges in turning down requests made from [the Blue House],” GS Group head Huh Chang-soo confessed.

The sentiment was echoed by LG Group chief Koo Bon-moo, who said "companies have no other choice but to follow governmental policies.”