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S.Korea special counsel to question Samsung chair

Wed Apr 2, 2008 11:15pm EDT

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SEOUL, April 3 (Reuters) - A special prosecutor investigating allegations of corruption at South Korea's largest conglomerate has asked the chairman of the Samsung Group [SAGR.UL] to appear for questioning on Friday, a company spokesman said on Thursday.

South Korea launched the probe in January in response to accusations made by a former top legal executive at Samsung that the company kept a war chest of over $200 million to bribe officials in order to squash investigations into its management practices.

"It is our understanding that he will appear," said Samsung spokesman Yim Jun-seok.

Special prosecutor Cho Joon-woong told Yonhap news agency Samsung's chairman was summoned for Friday afternoon.

"We have decided to call in Chairman Lee Kun-hee at 2 p.m. (0500 GMT) tomorrow and have notified Samsung of this," Cho was quoted as saying.

A member of Cho's team confirmed that Lee had been called in for questioning.

Samsung has denied any wrongdoing and called the accusations groundless. A group spokesman said it has refrained from making statements about specifics of the special investigation.

Yim said the company was "surprised and concerned" about the summons. Lee, who rarely speaks to reporters, was not immediately available for comment.

Lee built Samsung into the top ranks of South Korea's family-controlled business groups and is one of the country's richest people.

Under his rein Samsung grew to a giant group with about 60 affiliates, accounting for about one fifth of the country's exports.

On Wednesday, the special counsel questioned Lee's wife.

Prosecutors have so far raided and searched various locations belonging to the Samsung Group, including chairman Lee's private residence and offices of its flagship Samsung Electronics Co Ltd (005930.KS). (Reporting by Jon Herskovitz and Lee Jiyeon; Editing by Tomasz Janowski)



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