Politics

Samsung HQ Raided By Prosecutors; Tech Company on a Downward Spiral?

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A giant tech company is caught in the middle of the ongoing political scandal in South Korea. On Tuesday, prosecution investigation officers were seen leaving the Samsung Headquarters in South Korea after it was implicated of supporting South Korean President Park Geun-hye?s confidant?s illegal foundations. Reports reveal that the daughter of the president?s confidant, Choi Soon-sil, is allegedly involved in suspicious foundations that Samsung and other big companies tried to finance.

Samsung, according to reports, gave Choi?s foundation in Germany a staggering amount of $3.1 million. Thousands of protesters have asked President Park Geun-hye to resign amid the controversy and explain to the people the alleged anomalies in Choi?s participation in government decisions. Choi Soon-sil apparently used her connections with the president in order to manipulate private companies in donating money to her foundations.

Samsung in the past years

Jonathan Bernstein, a crisis management expert, said ?Samsung has become an embarrassment to Korea, where saving face is still a factor in reputation management. Samsung?s board of directors has to firmly take charge of the company?s direction now in order to reassure both internal and external stakeholders.?

The prosecution team has vowed to invite the top officials of these businesses in a closed door investigation on whether they have been part of the government?s anomalous transactions. Meanwhile, Samsung is not the only business implicated in the anomalies. According to the Korea Times, a business executive who refused to be named said, it?s hard to say no to the president. ?If President Park demanded business heads donate money to the Mir and K-Sports Foundations, it would be impossible for them to refuse such a request. Unfortunately, evidence points to the fact that the President actually met business tycoons in private and asked them to provide funds. But it still remains to be seen whether the leaders asked for favors in return. I hope the prosecution’s investigation into businesses ends as soon as possible to minimize its adverse effects on corporate activities.”

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This is not the first time Samsung is put in a hot situation. Previously, the company came under fire when the Samsung Galaxy Note smartphones suffered deadly setbacks, putting the company under scrutiny and investigation.

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