PSPD Levels Criticism at Samsung’s Possible Involvement in Lee’s Sex Scandal

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Monday, July 25th, 2016

Samsung Group Chairman Lee Kun-hee

The People's Solidarity for Participatory Democracy (PSPD), one of the leading civic groups in South Korea, said on July 22, “Samsung Group Chairman Lee Kun-hee paying for sex is a crime, but the real problem is to find out whether the group chairman's secretary office or a Samsung affiliate were financially involved in the scandal.”

The PSPD said, “Korean news outlet Newstapa reported that up to 5 sex workers were invited to Lee's residence in Samseong-dong and a secret rental home in Nonhyeon-dong and each was paid around 5 million won for sex by Lee. The news outlet also said there was circumstantial evidence that Samsung Group had been involved in Lee procuring sex services.”

“It’s been confirmed that Kim In, then CEO of Samsung SDS, paid a lump sum deposit of 1.3 billion won on the secret rental home in Nonhyeon-dong. Kim initially denied having paid the deposit, but suddenly changed his tune and admitted to renting the house for personal reasons while having an interview with reporters,” the PSPD mentioned.

“His admission indicates that he violated the anti-prostitution law, which not only criminalizes the selling and buying of sex but also bans providing trysting places for prostitution. Therefore, police investigation into the scandal is inevitable,” the PSPD argued.

The PSPD pointed out, “What matters most is to find out whether the group chairman's secretary office or a Samsung affiliate provided money for Lee’s sexual indulgence because it is hard to believe that the elderly chairman alone rented the trysting place and made all the arrangements to receive sex services from up to 5 sex workers on five separate occasions.”

The PSPD added, “If the allegations about Samsung Group’s involvement in the scandal turned out to be true, Samsung Group could face charges of breach of trust and aiding prostitution on the grounds that the group chairman’s sexual desire was slaked by abusing a Samsung affiliate’s funds and manpower .”

“Furthermore, to prevent chaebol families from misusing chaebol affiliates’ assets and manpower for personal reasons, a bill to amend the commercial law should be swiftly passed to pave the way for appointing independent directors or auditors who can keep tabs on chaebol families.”


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