Samsung Electronics president grilled amid biotech accounting scandal

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Samsung Electronics president grilled amid biotech accounting scandal

Chung Hyun-ho, president of Samsung Electronics' business support task force, leaves the Seoul Central District Prosecutors' Office in Seocho District, Wednesday morning, after being questioned over his alleged role in Samsung Biologics' accounting fraud. Yonhap

Chung Hyun-ho, president of Samsung Electronics' business support task force, underwent over 17 hours of questioning by prosecutors about his suspected involvement in alleged accounting fraud at the company's biotech affiliates before being allowed to return home early Wednesday morning.

The 59-year-old Chung, known as one of the closest aides to Samsung Electronics Vice Chairman Lee Jae-yong, didn't respond to questions from reporters as he left the Seoul Central District Prosecutors' Office in southern Seoul at 2:30 a.m.

Chung, who entered the prosecutors' office at 8:50 a.m. Tuesday, was believed to have been grilled by prosecutors for over 17 hours about his role in the conglomerate's alleged systematic attempt to cover up accounting irregularities at contract drug manufacturer Samsung BioLogics and its affiliate, Samsung Bioepis.

Prosecutors suspect that Chung ordered the destruction and manipulation of evidence about window dressing by the two biotech affiliates ahead of the launch of their probe last year. Samsung Electronics is believed to be functioning as a control tower for other Samsung Group companies.

Chung reportedly denied his participation in the attempt to cover up evidence.

Samsung Electronics Vice Chairman Lee Jae-yong, left, the de facto leader of South Korea's top conglomerate, Samsung Group, meets Crown Prince of Abu Dhabi Mohammed bin Zayed Al-Nahyan in Abu Dhabi on Monday, in this photo captured from the latter's Twitter account. Yonhap

The window dressing was allegedly committed in 2015 to inflate the valuation of Samsung BioLogics ahead of its initial public offering in 2016. Civic activists have claimed the alleged window dressing was intended to enhance Lee's control of Samsung Group by seeking to inflate Cheil Industries Inc.'s stake in Samsung BioLogics ahead of Cheil's merger with Samsung C&T Corp. in 2015.

One of Chung's subordinates, who was accused of deciding at a company meeting on May 5, 2018, to manipulate and destroy evidence of accounting irregularities by the two Samsung biotech companies, was arrested last Wednesday, while a number of lower-ranking executives of the three Samsung companies were arrested in May on the same charges.

Prosecutors suspect that the alleged scheme to destroy evidence was finally approved at a top-level meeting at a Samsung Group guesthouse in Seoul on May 10, 2018, which was attended by Lee and Chung.

Samsung has denied the allegations, saying the latter meeting was held to discuss business plans of the two biotech companies.

Prosecutors say they will decide later whether to request an arrest warrant for Chung and whether to summon Lee. (Yonhap)


Chung Hyun-ho, president of Samsung Electronics' business support task force, leaves the Seoul Central District Prosecutors' Office in Seocho District, Wednesday morning, after being questioned over his alleged role in Samsung Biologics' accounting fraud. Yonhap

Chung Hyun-ho, president of Samsung Electronics' business support task force, underwent over 17 hours of questioning by prosecutors about his suspected involvement in alleged accounting fraud at the company's biotech affiliates before being allowed to return home early Wednesday morning.

The 59-year-old Chung, known as one of the closest aides to Samsung Electronics Vice Chairman Lee Jae-yong, didn't respond to questions from reporters as he left the Seoul Central District Prosecutors' Office in southern Seoul at 2:30 a.m.

Chung, who entered the prosecutors' office at 8:50 a.m. Tuesday, was believed to have been grilled by prosecutors for over 17 hours about his role in the conglomerate's alleged systematic attempt to cover up accounting irregularities at contract drug manufacturer Samsung BioLogics and its affiliate, Samsung Bioepis.

Prosecutors suspect that Chung ordered the destruction and manipulation of evidence about window dressing by the two biotech affiliates ahead of the launch of their probe last year. Samsung Electronics is believed to be functioning as a control tower for other Samsung Group companies.

Chung reportedly denied his participation in the attempt to cover up evidence.

Samsung Electronics Vice Chairman Lee Jae-yong, left, the de facto leader of South Korea's top conglomerate, Samsung Group, meets Crown Prince of Abu Dhabi Mohammed bin Zayed Al-Nahyan in Abu Dhabi on Monday, in this photo captured from the latter's Twitter account. Yonhap

The window dressing was allegedly committed in 2015 to inflate the valuation of Samsung BioLogics ahead of its initial public offering in 2016. Civic activists have claimed the alleged window dressing was intended to enhance Lee's control of Samsung Group by seeking to inflate Cheil Industries Inc.'s stake in Samsung BioLogics ahead of Cheil's merger with Samsung C&T Corp. in 2015.

One of Chung's subordinates, who was accused of deciding at a company meeting on May 5, 2018, to manipulate and destroy evidence of accounting irregularities by the two Samsung biotech companies, was arrested last Wednesday, while a number of lower-ranking executives of the three Samsung companies were arrested in May on the same charges.

Prosecutors suspect that the alleged scheme to destroy evidence was finally approved at a top-level meeting at a Samsung Group guesthouse in Seoul on May 10, 2018, which was attended by Lee and Chung.

Samsung has denied the allegations, saying the latter meeting was held to discuss business plans of the two biotech companies.

Prosecutors say they will decide later whether to request an arrest warrant for Chung and whether to summon Lee. (Yonhap)




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