Samsung boss in tax evasion charge

Samsung chairman and nine other directors faces prosecution over $114m of taxes allegedly evaded

Written by Barbara Buchanan

Accountancy Age, 17 Apr 2008

The chairman of South Korea’s largest conglomerate Samsung, Lee Kun-hee, has been charged with tax evasion and breach of trust.

The move follows a three-month investigation into allegations of corruption into the firm, the BBC reported.

Spanish newspaper El Pais said the matter related to $114m worth of unpaid tax by Lee and nine other directors.

In a strongly-worded statement, prosecutors said Samsung had a lot of ‘structural problems’, including ‘illicit transfer of management control’.

‘It is the hope of our investigation team that this probe would serve as an opportunity for Samsung to shed these problems and be reborn as an undisputed ultra first-class global company,’ it said.

A Samsung statement said: ‘Taking this investigation as a new starting point, Samsung is preparing reform plans based on various sectors of our society.’

The electronics giant and ship builder accounts for nearly a fifth of all South Korean exports employing 754,000 staff worldwide and enjoying annual profits of more than $14bn (£7bn).