Scandal hearings put S. Korea tycoons in hot seat

South Korea lawmakers on Monday kicked off an unprecedented series of hearings that will see the country's business elite grilled over a corruption scandal engulfing impeachment-threatened President Park Geun-Hye.

The powerful heads of family-run conglomerates, or "chaebols," such as Samsung and Hyundai will be among those testifying before a parliamentary investigation ahead of an impeachment vote to remove the president on Friday.

The hearings opened on the back of a series of mass anti-Park demonstrations in Seoul that have seen millions of people take to the streets.

National Security Office chief Kim Kwan-Jin (L) and other presidential aides take an oath during a hearing on South Korean President Park Geun-Hye's corruption scandal in Seoul ©YONHAP (YONHAP/AFP)

Park is accused of colluding with her long-time friend, Choi Soon-Sil, to strong-arm giant corporations into "donating" nearly $70 million to two dubious non-profit foundations.

Choi has been indicted for coercion and abuse of power, and is accused of syphoning some of the donated funds for personal use. She denies all criminal charges.

Choi had been summoned for questioning at the televised hearings, but made it clear Monday she would absent herself, citing health grounds. Lawmakers said she faced jail time for contempt if she failed to appear.

Tuesday's testimony will be devoted to interrogating the corporate tycoons, including Samsung group scion Lee Jae-Yong, Hyundai chairman Chung Mong-Koo and seven heads of other conglomerates like LG, Lotte, Hanjin and CJ.

They are among the wealthiest and most powerful people in the country, but the "Choi-gate" scandal has taken the lid off simmering public resentment over their influence and perceived sense of privilege at a time of slowing economic growth

- Tycoon tutorials -

According to company sources cited by the largest-circulation newspaper, Chosun Ilbo, many of them have been going through frantic preparations to avoid any public humiliation, holding mock question and answer sessions with aides and memorising responses to sensitive issues.

Some researched subway and bus fares in case they are asked to prove their common-touch credentials, while others sent managers on recces to the national assembly -- timing the walk to the hearing room and working out routes to avoid the press, Chosun said.

Chaebol heads are unused to being questioned or held accountable -- even to their shareholders.

"It is part of the deep-rooted, twisted corporate culture in South Korea to treat founding family members as if they are royalty," said Shim Jung-Taik, an author of several books on Samsung and its corporate culture including a biography of its ailing chairman, Lee Kun-Hee.

"None of them would have attended these hearings in normal times. But the public fury shown at recent mass rallies was too much to ignore even for these royals," Shim said.

- Samsung woes -

Samsung -- the South's largest business group -- made the biggest contributions of 20 billion won ($17 million) to Choi's foundations, followed by Hyundai, SK, LG and Lotte.

Prosecutors have raided the headquarters of Samsung and other groups for any evidence that they received policy favours in exchange for their contributions.

Samsung is separately accused of funnelling millions of euros to Choi to bankroll her daughter's equestrian training in Germany.

As part of the widening probe, prosecutors are also investigating whether Samsung lobbied officials at the state pension fund for their support over a contested merger deal last year.

Park has not been summoned for questioning by lawmakers.

Monday's session involved several presidential aides who were grilled over some of the more lurid elements uncovered by the case -- including the mass purchase by Park's office of Viagra pills.

The officials said the erectile-dysfunction drug had been bought to treat potential altitude sickness during Park's tour of various African nations in May.

In order to secure the required two-thirds majority, the opposition-sponsored impeachment motion will need the support of more than two-dozen lawmakers from Park's ruling Saenuri Party.

Saenuri rebels have sent mixed messages on how they might vote, but in the wake of another huge street protest on Saturday, signalled that they were likely to come down on the side of impeachment.

The party's official proposal that Park be allowed to step down voluntarily in April has met with public anger, and a torrent of text messages and e-mails urging its members to oust the president.

"I get a text message every single second," said Saenuri legislator Lee Eun-Jae.

Protesters carry an effigy of South Korea's President Park Geun-Hye during a rally in Seoul on December 3, 2016 ©JUNG Yeon-Je (AFP)</s>(CNN) Embattled South Korean President Park Geun-hye faces an ultimatum from her own party: Announce a timeline for her resignation or face possible impeachment.

Park, who's been dogged by a classified information scandal involving a longtime friend, said earlier this week she would resign if that's what the National Assembly wants.

Many observers see stepping down as a way for Park to avoid the embarrassment of impeachment as opposition parties look to press ahead next week with a vote to unseat her.

Park stopped short of specifying a date for her resignation, leading some breakaway members of her Saenuri Party to ask her to set a timeline for her departure. Mainstream members of her party have stipulated that she must stand down by April 30, with a proposed presidential election in June. Her five-year term is set to end in February 2018.

Choi, who does not hold an official government position, is accused of using her relationship with Park to accumulate millions of dollars in donations to her foundations. Choi is charged with abuse of power, fraud and coercion, and two of Park's former aides also face criminal charges.

Park does not face the threat of charges because the South Korean Constitution gives immunity to the sitting President.

Prosecutors have said they want to speak to Park after naming her as a suspect in the corruption probe. Her attorneys have said she is willing to cooperate, but she said this week she was too busy to meet with prosecutors.

On Saturday, tens of thousands of protesters again took to the streets of Seoul to push for Park's ouster.

Since the corruption scandal broke, a survey by Gallup Korea showed Park's approval ratings dipped into single digits, making her one of South Korea's least popular leaders since the country became a democracy in the 1980s.

South Korea's opposition parties said they would vote Friday on a motion to impeach Park.

With the impeachment vote looming, breakaway members of the ruling Saenuri Party are instead pushing for Park to announce a timeline to resign by 6 p.m. local time Wednesday, arguing that impeachment then would be unnecessary.

The nonloyalist members of the Saenuri Party members have vowed that if Park does not confirm her resignation date by that deadline they will vote for impeachment two days later. The three opposition parties have a combined total of 165 out of the 300 legislative seats. A two-thirds majority of 200 votes is required to pass the impeachment motion, so members of Park's party will be needed to help pass it.

If successful, the motion would then pass to the constitutional court for consideration. Justices have 180 days to decide the case after it is referred to them.

In a nationally televised speech last month, Park said she deeply regretted her actions.

"I again deeply apologize for causing an immeasurable disappointment and worry," she said. "All this is my fault, caused by my negligence."</s>SEOUL: South Korea’s scandal-hit President Park Geun-Hye said Tuesday she would accept the result of a looming and possibly lengthy impeachment process, but defied pressure to resign immediately.

An opposition-sponsored impeachment motion is almost certain to be adopted by the national assembly on Friday, with some 30 rebel MPs from Park’s Saenuri party saying they will vote in favor.

The motion would then require the approval of the Constitutional Court, whose deliberations could take up to six months.

“Even if the impeachment bill is passed, I am resolved to continue calmly for the country and the people, while watching the Constitutional Court procedures,” Park was quoted as saying by Saenuri parliamentary floor leader Chung Jin-Suk.

During an hour-long meeting with the president, Chung said he had told her that public sentiment had forced the Saenuri party to withdraw an earlier proposal for Park to step down voluntarily in April.

“She nodded and said she accepted my stance,” Chung said.

Millions of South Koreans have taken to the streets of Seoul and other cities in a series of weekly mass protests demanding Park’s ousting.

During the latest rally on Saturday, there was particular anger directed against the Saenuri’s resignation proposal, with protesters saying it was aimed at buying Park time and avoiding impeachment.

As a result the party withdrew its whip aimed at defeating Friday’s motion and said its MPs would be allowed to vote freely according to their conscience.

Hwang Young-Cheul, one member of an anti-Park faction within the party, said the idea that the president could step down in April had “already been rejected by the people”.

“All preparations have been made that are necessary to ensure the impeachment motion be passed,” Hwang said.

The scandal that has engulfed Park and paralyzed her administration has focused on her friendship with long-time confidante Choi Soon-Sil.

Choi has been charged with meddling in state affairs and using her Blue House connections to force dozens of conglomerates to donate around $70 million to two foundations she controlled.

In a first for a sitting South Korean president, Park has been named a “suspect” by prosecutors investigating Choi.

While she retains the presidency, Park cannot be charged with a criminal offence except insurrection or treason, but she would lose that immunity once she leaves office. AFP

 AFP/CC</s>South Korean President Park Geun-hye said on Tuesday she would accept the result of an impeachment vote against her this week but indicated she would not step down now as demanded by opposition parties, a top official of her Saenuri Party said.

She also said she had been willing to accept her party's proposal for her to step down in April next year, Saenuri Party official Chung Jin-suk said, after a meeting between party leaders and the embattled president.

Park faces a pivotal week, with an effort to impeach her gaining support from within her party.</s>A South Korean parliamentary committee on Wednesday ordered the jailed woman at the center of a scandal that threatens to bring down the president to attend a hearing investigating her alleged manipulation of government affairs.

The move at the beginning of the hearing was the latest step in what appears to be the final days in power for President Park Geun-hye. She faces an impeachment vote Friday.

Lawmakers sent about 20 security officers with an order demanding that Choi Soon-sil, who is accused of colluding with Park to control government affairs and extort companies, plus 10 other witnesses attend the hearing.

Choi and the others could face jail or fines if they refuse. In past cases, witnesses who refused to attend hearings often were fined.

Choi, now jailed at a detention center near Seoul, had cited a panic disorder as the reason why she couldn’t testify on Wednesday, according one of the lawmakers at the hearing.

Choi and two of Park’s ex-presidential aides have been indicted. Fourteen people caught up in the scandal were at the hearing, including two of Choi’s former associates and ex-presidential chief of staff Kim Ki-choon.

If impeached, Park’s presidential powers will be suspended and the country’s Constitutional Court will have up to 180 days to rule whether to formally unseat her.

On Tuesday, Park told ruling party leaders that she is willing to accept the outcome if she is impeached and would make “every available effort” to prepare for a court process. The comments suggest Park is now bracing for a Constitutional Court procedure that would determine her fate, according to South Korean media reports.</s>SEOUL, South Korea (AP) — South Korea is entering potentially one of the most momentous weeks in its recent political history, with impeachment looming for President Park Geun-hye as ruling party dissenters align with the opposition in a strengthening effort to force her out.

Anti-Park lawmakers in the ruling Saenuri Party said Monday that about 35-40 of them will vote for Park’s impeachment Friday. Those votes, when combined with 172 from opposition and anti-Park independent lawmakers, should be enough to impeach her.

The decision by the anti-Park ruling party lawmakers came after hundreds of thousands of people turned up for a rally Saturday calling for Park’s ouster, the sixth straight weekend of demonstrations.

The opposition submitted an impeachment motion over the weekend, accusing Park of letting a longtime confidante manipulate government affairs.</s>SEOUL, Korea, Republic Of — South Korea is entering potentially one of the most momentous weeks in its recent political history, with impeachment looming for President Park Geun-hye as ruling party dissenters align with the opposition in a strengthening effort to force her out.

Anti-Park lawmakers in the ruling Saenuri Party said Monday that about 35-40 of them will vote Friday to impeach Park, who is embroiled in an explosive political scandal. Those votes, when combined with 172 from opposition and anti-Park independent lawmakers, should be enough to impeach her.

If impeached, Park's presidential powers will be suspended until the country's Court determines whether to formally unseat her. The court has up to 180 days to decide.

The decision by the anti-Park ruling party lawmakers came after hundreds of thousands of people turned up for a rally in Seoul on Saturday calling for Park's ouster, the sixth straight weekend of demonstrations. Park made a conditional resignation offer last week, saying she would stand down if parliament works out a stable power transfer, but the opposition described it as a stalling tactic.

The scandal on allegations that Park let her longtime friend Choi Soon-sil manipulate government affairs from the shadows and extort money from businesses. Park has denied most of the allegations, though she acknowledged that she got help from Choi, who has never held a government job, in editing her speeches and with unspecified "public relations" issues.

Prosecutors have indicted Choi and two of Park's ex-aides. Park, who has immunity from prosecution while in office, has refused to meet with prosecutors.

Lawmakers are holding hearings to separately look into the scandal. Heads of businesses allegedly involved in the scandal, including Samsung and Hyundai conglomerates, were scheduled to attend a hearing Tuesday. Choi has refused to testify at her session Wednesday, according to officials at the National Assembly, South Korea's legislature.

A coalition of opposition and independent lawmakers submitted a motion on Park's impeachment over the weekend, accusing her of violating the constitution and undermining democracy. A National Assembly official is to report the motion to a plenary session on Thursday, a formal procedure that can force an impeachment vote within 72 hours.

The opposition wants an impeachment vote on Friday, the final day of the current parliamentary regular session.</s>SEOUL, South Korea (AP) — South Korean President Park Geun-hye is willing to "calmly" accept the outcome if the opposition-controlled parliament votes for her impeachment this week, but prefers to resign on her own terms, lawmakers from her party said Tuesday.

Chung Jin Suk, floor leader of the conservative ruling party, said after an hour-long meeting with Park that she was willing to accept a now-withdrawn proposal by the party for her to voluntarily step down in April to set up a presidential election in June. If lawmakers vote to impeach her, Park said she would make "every available effort" to prepare for a court process that would determine whether she would be formally removed, according to Chung.

The party's chairman, Lee Jung Hyun, who also attended the meeting, said it seemed that Park was hoping lawmakers would accept her resignation rather than push ahead with an attempt to impeach her.

Park has been accused by state prosecutors of helping a close confidante extort money and favors from large companies and manipulate state affairs.

On Saturday, opposition lawmakers registered an impeachment bill for Park to set up a floor vote that could take place as early as Friday. If the bill goes through, Park would be suspended as president but not yet removed. Her duties would be temporarily transferred to the prime minister while the country's Constitutional Court reviews whether her impeachment could be constitutionally justified.

Following a conditional offer by Park to leave office last week, a group of anti-Park lawmakers in the ruling party called for her to announce by this Wednesday that she will step down voluntarily in April. However, they changed their stance after millions of people rallied across the country over the weekend calling for Park's removal. The ruling party lawmakers said Monday that about 35-40 of them will vote on Friday to impeach Park regardless of whether she promises to quit.

Park said she was ready to "calmly move ahead for the state and the people and to see what happens with the Constitutional Court" if lawmakers vote to impeach her, Chung said.

"We explained that the party's stance that had called for an April resignation and June presidential election has become realistically hard to maintain," Chung said.

She said she told Park that the party's lawmakers will vote by "their conscience and free will" on Friday.

The impeachment bill needs the support of at least 200 lawmakers from the 300-seat parliament to pass. If it passes, the Constitutional Court would be required to rule within 180 days. If six of the court's nine justices support the impeachment, Park will be officially removed from office. The country then has to hold a presidential election within 60 days.</s>SEOUL, South Korea -- South Korean President Park Geun-hye has offered to step down in April, leaders of her party said Tuesday after meeting with her. But the offer was unlikely to prevent an impeachment vote on Friday over a corruption scandal that has turned the vast majority of the public against her.

Park appeared to accept that a vote on impeachment is inevitable and said that she is bracing for it, Chung Jin-suk, the floor leader of Park's governing party, Saenuri, said in a statement Tuesday after meeting with the president for 55 minutes.

Chung said he told Park the party could not prevent the impeachment vote and that she nodded in response.

Park said last week that she was willing to resign before the end of her term but that she would leave it to the National Assembly to decide the terms, including the date of her departure. Critics saw that offer as an attempt to divide her opponents and stall the push for impeachment.

Members of Saenuri loyal to Park suggested that she resign in April, and it seemed possible that some lawmakers leaning toward impeachment would accept that as a compromise. But a huge rally against the president on Saturday, the latest in a series of enormous weekly demonstrations, appears to have bolstered pro-impeachment sentiment in the National Assembly.

It is uncertain what the outcome of an impeachment vote would be. But news outlets reported Tuesday that the pro-impeachment lawmakers were believed to have the 200 votes necessary to pass the bill in the 300-seat body.

"I have always thought I would accept" the suggestion to resign in April, Chung quoted Park as saying. Leaving office in April would cut Park's term short by 10 months.

According to Chung, Park said that if she were impeached, she would stay "calm and composed" during the next step in the process: waiting for the Constitutional Court to rule on whether her impeachment was warranted.

The court has up to six months to decide. During that period, Park's presidential powers would be suspended, and Prime Minister Hwang Kyo-ahn would step in as acting president. If the court were to rule against her impeachment, she would immediately return to office. If not, South Korea would hold an election in 60 days to select her successor.

Opposition lawmakers criticized Park on Tuesday for not resigning immediately. "She tries to hang on to the very last," said Youn Kwan-suk, a spokesman for the main opposition Democratic Party. "We will fulfill the people's will by impeaching her."

Some political analysts say an immediate departure by Park would give the opposition a better chance of winning the presidency, because the 60 days within which an election must be held would not give Saenuri much time to recover from the disgrace.

The government has been paralyzed for weeks over a corruption and influence-peddling scandal involving a longtime friend and confidante of Park, Choi Soon-sil. Choi has been indicted on a charge of extorting large sums from South Korean companies. Prosecutors have said that Park helped her and have identified her as a criminal suspect, a first for a president, though she cannot be indicted while in office.

Park would be the first South Korean president to face impeachment since 2004, when the National Assembly impeached Roh Moo-hyun, the president at the time, for violating election law. Two months later, the Constitutional Court ruled that Roh's offenses were too minor to justify impeachment and restored him to office.

But Park faces much more serious accusations. In an impeachment motion submitted to the National Assembly over the weekend, opposition parties accused Park of conspiring with Choi to force large South Korean businesses, including Hyundai and Samsung, to donate tens of millions of dollars to two foundations Choi controlled. They also accuse her of illegally sharing confidential government documents with Choi, who had no official post. Prosecutors have also accused Park of those offenses.</s>South Korean lawmakers Monday kicked off an unprecedented series of hearings that will see the country’s business elite grilled over a corruption scandal engulfing President Park Geun-hye, who is threatened with impeachment.

The powerful heads of family-run conglomerates such as Samsung and Hyundai will be among those testifying before a parliamentary investigation ahead of Friday’s impeachment vote to remove the president.

The hearings opened on the back of a series of weekly mass demonstrations in Seoul that have seen millions of people take to the streets to call for Park’s ouster.

Park is accused of colluding with her secretive confidante, Choi Soon-sil, to strong-arm giant corporations into “donating” nearly $70 million to two dubious non-profit foundations.

Choi, who has been indicted on charges of coercion and abuse of power, is accused of syphoning some of the donated funds for personal use. She denies all criminal charges.

Choi is set to appear at the televised hearings Wednesday, marking the first time she will answer questions in public on her role in the scandal.

Tuesday’s testimony will be devoted to interrogating the corporate bigwigs, including Samsung group scion Lee Jae-yong, Hyundai Chairman Chung Mong-koo and seven heads of other conglomerates including LG, Lotte, Hanjin and CJ.

They are among the wealthiest and most powerful people in the country, but the “Choi-gate” scandal has taken the lid off simmering public resentment over their influence and perceived sense of privilege at a time of slowing economic growth

According to industry sources cited by the largest-circulation newspaper, Chosun Ilbo, many of them have been going through frantic preparations to avoid any public humiliation, holding mock question-and-answer sessions with aides and memorizing responses to sensitive issues.

Samsung — South Korea’s largest business group — made the biggest contributions of 20 billion won ($17 million) to Choi’s foundations, followed by Hyundai, SK, LG and Lotte.

Samsung is also accused of separately offering millions of euros to Choi to bankroll her daughter’s equestrian training in Germany.

Prosecutors have raided the headquarters of Samsung and other groups for any evidence that they received policy favors in exchange of donations.

Park will not appear before the hearings, after fierce opposition from her ruling conservative party to the idea of her being called.
The South Korean National Assembly begins hearings ahead of an impeachment vote against President Park Geun-Hye.