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S.Korean prosecutors storm Samsung Electronics over president's confidante scandal

Xinhua, November 8, 2016 Adjust font size:

South Korean prosecutors on Tuesday stormed the offices of Samsung Electronics for allegations that the company had illicitly provided finance assistance to the daughter of Choi Soon-sil, a longtime confidante of President Park Geun-hye suspected of intervening in state affairs.

Investigators from the prosecution's special investigative unit in charge of the Choi Soon-sil case raided the Samsung offices in Gangnam district in central Seoul at 6:40 a.m. local time, according to reports from Yonhap news agency and news broadcaster YTN.

Since 2008, the Gangnam offices have been used as the headquarters of Samsung Group, the country's largest family-run conglomerate. Samsung Electronics is the group's crown jewel unit.

The offices of Samsung Electronics' corporate relations team and the team's head Park Sang-jin were subject to the search and seizure by prosecutors. Park Sang-jin is a Samsung Electronics president for corporate relations and now the chief of the Korea Equestrian Federation.

Samsung is suspected of having provided 2.8 million euros (about 3 million U.S. dollars) to a company in Germany co-owned by Choi Soon-sil and her 20-year-old daughter. Choi's daughter was a member of the South Korean equestrian team.

Prosecutors are investigating an allegation that Samsung's financial assistance to Choi's daughter was provided in return for possible business favors. Samsung has denied the allegation.

The offices of the Korea Equestrian Federation and the Korea Horse Affairs Association have been also raided by investigators, according to media reports. The prosecution already summoned and questioned senior officials of the federation at the weekend.

Choi Soon-sil, President Park's decades-long confidante, has been charged with abuse of power and fraud on allegations that Choi pressured 53 conglomerates into donating 77.4 billion won (68 million U.S. dollars) to the Mir and K-Sports foundations.

Among the conglomerates, Samsung made the largest contributions of 20.4 billion won to the establishment of the cultural and sports funds.

Ahn Jong-beom, former senior presidential secretary, has been charged with abuse of power and extortion on his alleged involvement in the forced donations. Enditem