Samsung corruption probe to continue through April

By Ed Oswald, BetaNews

March 11, 2008, 4:48 PM

Following a raid in January of the office of Samsung's chairman Lee Kun-hee, the lead Korean prosecutor in the case is being given extra time to complete his investigation.

Special prosecutor Cho Joon-woong asked for additional time as he claimed he would not be able to complete the investigation in the original 60 days he was granted.

Cho will now have until April 8 to assemble evidence of corruption and bring charges against those involved in the probe, Korean news sources reported on Tuesday. Much of the investigation centers around charges that the company maintained a slush fund to use for bribes of government officials and prosecutors.

Also under investigation is how Lee transferred control of the company over to his son, Jae Yong. The slush fund was said to be used to keep people quiet over the transfer of power between Lee and Jae.

Samsung officials and their families maintained some 3,800 bank accounts, the investigation has found, of which 1,300 are said to have been involved in the slush fund. It is said the amount of money in the fund could have approached $220 million USD.

Along with the initial allegations, the investigation has also raised new questions regarding bribes that the current government administration and its officials may have taken in return for keeping quiet.

A spokesperson for Samsung was not commenting on the allegations.