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South Korea's eight major business tycoons appeared before the National Assembly on Tuesday in line with the probe into a corruption and influence-peddling scandal involving President Park Geun-hye and her confidante.
The investigation centers on conglomerates' alleged behind-the-scenes deals with the confidante, Choi Soon-sil, and whether the president pressured them to donate to two non-profit foundations.
Attending the session are the chiefs of Samsung, Hyundai Motor, SK, LG, Lotte, Hanwha, Hanjin and CJ.
Samsung heir-apparent Lee Jae-yong was questioned over allegations that the company received support from the National Pension Service (NPS) for its controversial merger of two affiliates in 2015 in exchange for donations and favors to Choi and her daughter.
In 2015, the Samsung Group merged two of its affiliates despite opposition from overseas investors. The state pension fund operator, which held an 11.6-percent stake in then-Samsung C&T Corp. and a 5-percent stake in Cheil Industries Inc., supported Samsung although some minor shareholders opposed the move.
The merger was seen as a step toward paving the way for the heir-apparent to take control of the conglomerate amid his father's hospitalization. His father Lee Kun-hee has been in the hospital since May 2014 after suffering a heart attack.
During the parliamentary session, Lee Jae-yong said the merger was not related to his succession, and claimed that it was only intended to benefit the companies.
"The NPS is the biggest investor of Samsung affiliates," Lee said. He was questioned over meeting officials from the NPS about the deal, even without having any shares in the former Samsung C&T.
Lee, however, admitted to providing Choi's daughter Chung Yoo-ra, a professional equestrian, with a horse valued at 1 billion won.
The Samsung heir-apparent said he will do his best to avoid being involved in such scandals in the future. Lee said he knew about Choi only recently.
The hearing is expected to affect the opposition-led impeachment vote against Park slated for Friday, political pundits said.
Park faces her biggest political crisis amid allegations that Choi exerted influence on state affairs without any seat in the administration based on her friendship with the president.
(YONHAP)
