The business community is bracing for stormy days ahead as the investigation progresses on shady foundations linked to the president's confidante Choi Soon-sil and companies that reportedly were forced to make donations to them, inside officials said Wednesday.
At the center of the storm are An Chong-bum, former senior presidential secretary for economy, and the Federation of Korean Industries. An faces prosecution questioning over allegations that he organized 77.4 billion won ($67.78 million) in contributions from 19 business groups through FKI. Lee Sung-cheol, vice chairman of FKI, overturned his earlier statement that the contributions had been voluntary, telling prosecutors on Friday that An had ordered them.
An, who also served as senior secretary for policy planning, stepped down over the weekend with a host of other presidential staff as President Park Geun-hye tried to contain a scandal involving her personal friend Choi. Choi is suspected of abusing her close ties with the president to amass a private fortune for herself and her family using cultural and sports foundations. In the process, she reportedly intervened in government appointments and other state affairs.
An so far has denied all suspicions, saying the contributions were voluntary and that the presidential office did not get involved in any way.
Executives of Lotte and SK have already been questioned by the prosecution. The two conglomerates are said to have been instructed to make additional donations to the foundations. Corporate watchers note that the two business groups were in compromised circumstances, their owner families indicted on charges of tax dodging, misappropriation and other financial misconduct, making them vulnerable to any pressure from the government.
The last time that business leaders were subjected to prosecution investigation en masse was 12 years ago when they were accused of making illegal political donations. Watchers say that this time, they may emerge as victims of political corruption, although some argue that the business groups made the donations expecting future favors.
Whether Lee, the FKI vice chairman, will be criminally charged is also closely watched by the business community. Watchers say if An is confirmed to have forced the donations, Lee could be charged as a collaborator.
"It's regrettable that the foundations have gone off track without serving their purposes, regardless of whether the donations were forced or not," a corporate official said. "We hope for the prosecution to conduct its investigation quickly so that there aren't more damages to business groups, taking into consideration the country's troubled economy." (Yonhap)
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