Defense & Intelligence Policy, Business and Technology

As Scandal Roils South Korea, Fingers Point to Mixing of Politics and Business

The New York Times: SEOUL, South Korea — The heir apparent to the Samsung empire, Jay Y. Lee, was trying to push through a corporate merger seen as critical to his plans to succeed his father as chairman.

For months, key shareholders fought the move. Then, suddenly, the standoff broke as South Korea’s government-controlled pension fund, which held the shares to cast the deciding vote, endorsed Mr. Lee’s deal.

A week later, President Park Geun-hye invited Mr. Lee to her office and asked for Samsung’s help with a campaign to promote South Korean culture and sports. Within months, Samsung had donated $17.4 million to two foundations controlled by the president’s confidante, Choi Soon-sil, and $6.2 million for the training of Korean equestrians, including Ms. Choi’s daughter.

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