UPDATE - SKorean business leaders humbled over political scandal

Lawmakers grill heads of biggest conglomerates over scandal that could lead to impeachment of President Park Geun-hye

UPDATES THROUGHOUT

By Alex Jensen

SEOUL (AA) - South Korea’s most powerful tycoons were 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 Seoul’s presidential office, known as the Blue House.

The National Assembly’s interrogation of the leaders of the country’s nine biggest conglomerates was unprecedented, drawing live television coverage on local news channels.

It also came ahead of 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 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.

None of the tycoons -- from Samsung, Hyundai Motor, SK, LG, Lotte, Hanwha, Hanjin, CJ and GS -- admitted to buying favors.

Samsung’s Lee 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 said. “We should have been a better example as a South Korean company.”

Criticized by lawmakers for offering indirect answers, Lee vowed to “take responsibility if there are any things that I was responsible for.”

The vice chairman, appearing instead of his ailing father, denied being asked for money during meetings with Park -- although Samsung’s donation exceeding 20 billion won ($17.46 million) was the highest among all the businesses under scrutiny.

“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.

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