Scandal hearings put S Korea tycoons in hot seat

South Korea lawmakers today 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.
Park is accused of colluding with her long-time friend, Choi Soon-Sil, to strong-arm giant corporations into "donating" nearly USD 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 today she would absent herself, citing health grounds. Lawmakers said she faced jail time for contempt if she failed to appear.

Tomorrow 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.

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