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Samsung Head Indicted for Tax Fraud

Electronics giant vows reform as chairman faces trial

By Jason Farago,  Newser Staff

Posted Apr 17, 2008 6:43 AM CDT
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(Newser) – The chairman of electronic giant Samsung will stand trial for tax evasion and breach of duty after special prosecutors alleged corruption in South Korea's largest industrial corporation. Lee Kun-hee was indicted in Seoul today for evading $114 million in taxes and for incurring losses at Samsung while installing his son in leadership positions, Bloomberg reports. Nine other execs at Samsung were also charged with crimes.

Lee, the paterfamilias of South Korea's richest family, has had brushes with the law before: in 1996 he was convicted of bribing two Korean presidents, for which he received a suspended sentence and later a pardon. Samsung, which accounts for 20% of South Korea's exports, has vowed to reorganize its management in the face of the scandal.

A South Korean woman walks past in front of Samsung's logo at downtown Seoul, South Korea, Thursday, April 17, 2008.
A South Korean woman walks past in front of Samsung's logo at downtown Seoul, South Korea, Thursday, April 17, 2008.   (AP Photo)
Samsung Group Chairman Lee Kun-hee arrives for questioning at the special prosecutor's office in Seoul, South Korea in this April 4, 2008 file photo.
Samsung Group Chairman Lee Kun-hee arrives for questioning at the special prosecutor's office in Seoul, South Korea in this April 4, 2008 file photo.   (AP Photo)
A special prosecutor, Cho Joon-woong, announces investigation results during a press conference at the special prosecutor's office in Seoul, Thursday, April 17, 2008.
A special prosecutor, Cho Joon-woong, announces investigation results during a press conference at the special prosecutor's office in Seoul, Thursday, April 17, 2008.   (AP Photo)
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Chosun Ilbo (South Korea)

Money • World

 
South Korea • corruption • Samsung • tax fraud • consumer electronics • Lee Kun-hee

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