S.Korea pension chief admits pushing Samsung deal in Park probe

SEOUL: South Korea’s National Pension Service chief admitted to pressuring the state-run fund to back a controversial merger of two Samsung units, prosecutors said Thursday during a widening probe into a corruption scandal engulfing impeached President Park Geun-Hye.

Park is accused of colluding with long-time confidant Choi Soon-Sil to strong-arm companies like Samsung into handing over tens of millions of dollars to dubious foundations which Choi controlled.

As part of the investigation, a team of special prosecutors has been looking into whether Samsung bribed Choi to win state approval for the merger of two of its units in July last year.

Former health minister Moon Hyung-Pyo – now National Pension Service (NPS) chief – was taken into emergency detention Wednesday on allegations that he pressured the fund to vote in favour of the merger when he served in the health ministry.

“He admitted that he gave such orders,” Special Prosecutors’ Office spokesman Hong JungSeok said.

Hong said prosecutors have applied for a warrant to formally arrest Moon for abuse of power and giving false testimony.

At a parliamentary hearing in November, Moon had denied any involvement in the merger.

The merger of Samsung units Cheil Industries and Samsung C T last year was seen as a crucial step to ensure a smooth fatherto-son power transfer to Lee JaeYong, scion of Samsung’s founding family.

Critics said it undervalued Samsung C T stock but NPS – the world’s third largest public pension fund and a major Samsung shareholder – backed the deal, allegedly incurring hundreds of millions of dollars in losses for NPS subscribers. — AFP