Samsung announces withdrawal from business lobby group

By Park Sae-jin Posted : February 6, 2017, 14:05 Updated : February 6, 2017, 14:05

[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]



Samsung Electronics announced the withdrawal of membership from an influential business lobby group Monday in a bid to refresh its image tainted by a corruption scandal involving President Park Geun-hye.

Samsung said it has delivered its decision to quit the Federation of Korean Industries (FKI), which have received membership fees from some 600 large firms affiliated with top conglomerates.

Samsung's withdrawal is expected to accelerate the federation's dissolution. LG and KT have already announced their decision to quit. The FKI was accused of fostering cronyism and corruption.

Through the federation, Samsung and other conglomerates are suspected to making cash donations to organizations controlled by Park's jailed crony, Choi Soon-sil.

Last month, a court refused to issue an arrest warrant for Samsung's virtual head Jay Y. Lee on charges of bribery, embezzlement, and perjury.

Special prosecutors have insisted Lee played a leading role in Samsung's cash donations, though his attorneys argued no strings have been attached, describing their client as the victim of coercion and blackmailing.

The scandal fanned public sentiment against corporate donations, which have long been a controversial issue in South Korea due to concern about collusive ties between businessmen and politicians.

Lee is accused of providing and pledging a total of 43 billion won (37 million US dollars) in bribes to Choi who is on trial for meddling in state affairs and pocketing corporate money.
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