Samsung Caught Bribing Government Officials

Dekortage writes "Allegedly, electronics giant Samsung Electronics attempted to bribe a South Korean government official with 5 million won (US$5,445). Ironically, the official was Lee Yong-chul, who was a presidential monitor against corruption at the time. This is the latest allegation against Samsung, which was recently accused of running 'a vast network of bribery through the government, the judiciary branch and the news media' that reaches all the way to South Korean President Roh Moo Hyun."

Comments

another slashdot "editing" moment

[gEvil (beta)]

This is another one of those slashdot moments that could easily be fixed with a bit of that pesky "editing" that the editors around here seem to loathe. Nearly every comment I'm reading talks about how the government official was corrupt, but a simple read of the article shows that he in fact REFUSED the bribe. There is no hypocrisy there--he is in charge of monitoring bribery in the government, Samsung attempted to bribe him, he refused it and is now using their attempt in a government case against Samsung. That is EXACTLY what he's supposed to be doing!

Re:another slashdot "editing" moment

[Red Flayer]

There's another explanation that makes far more sense given the timeframe and the public statements made by the officials in question.

Nearly every comment I'm reading talks about how the government official was corrupt, but a simple read of the article shows that he in fact REFUSED the bribe

Reading the article will show that he ACCEPTED the bribe, then only refused it when he saw it was cold hard cash.

There is no hypocrisy there--he is in charge of monitoring bribery in the government, Samsung attempted to bribe him, he refused it and is now using their attempt in a government case against Samsung.

No. Another official blew the whistle on the widespread bribery, and Lee has come forward in order to cover his own ass. After almost three years, Lee did nothing -- didn't come forward, didn't report the attempted bribe to his superiors, didn't do anything except accept a job in the industry (outside of government) -- until the shit had already started to hit the fan.

Would it surprise anyone if the private firm Lee Yong-chul now works for has competitors of Samsung on its client list?

Furthermore, would it surprise anyone if Lee Yong-chul garnered evidence of the bribe attempt for a reason different than whistle-blowing? Extortion/blackmail, perhaps? When the scandal becaome public (through the statements of Kim Yong-chul), Lee Yong-chul's documentation of the briber attempt became relatively worthless. What better way to try to save his own arse than by going public?

Note also that Lee's role in investigating government corruption was prompted by the revelation that President Roh (his boss) was involved in a bribery/corrpution/slush fund scandal during the 2002 election campaign. Lee reeks of corruption as badly as the rest, but was smart enough to engineer a way to come out looking somewhat clean.

Re:Has Samsung learned nothing from the U.S.?!?!

[elrous0]

Hey, good enough for the Bush family, good enough for a South Korean politician.

Re:Has Samsung learned nothing from the U.S.?!?!

[Admiral Ag]

I live in Korea. Bribery is a way of life in business here. It used to be far worse. Lee Myung Bak, the conservative candidate for the upcoming presidential election is being hounded for corrupt business practices from decades ago. I don't like the guy, but this is unfair, since you simply couldn't be in business at the time without engaging in massive bribery. To its credit the government has essentially declared war on graft, but old habits die hard. A few companies have apparently sworn to avoid it as well, since they understand, as the government does, that it doesn't work particularly well when you are doing business deals with foreigners.

One explanation I have heard is that it is because Korea is a Confucian society. Personal relationships and personal loyalty are extremely important here (I'm told that corporate executives were shamed when they were forced to restructure and make employees redundant, because the expectation of loyalty ran both ways). Of course, when your ethical code emphasizes personal relationships, it seems odd to think of one having a personal relationship with an abstract entity like the law, and hence bribery isn't seen as that bad.

On the other hand, it must be difficult for foreigners who tried to do business here in the early days. Koreans have a great love for drink and hookers (Google what "Barber Shop" means in Korea - a clue: if you go to one for a haircut, you will receive a surprise). It was customary, among with other gifts, to ply one's prospective business partner with alcohol and women.

Please don't think that I am bashing the place. I really like it here. The people are lovely and the food is great, and you can watch Starcraft tournaments 24/7 on one of the many TV channels that broadcast them.

Re:5M Won

[Admiral Ag]

Believe me, it isn't.

Apparently in an attempt to make it harder to bribe people, the highest denomination banknote here is 10,000 won, which is about ten dollars (a 50,000 won note is in the works). I bought a mac with cash, and it was like trying to buy a loaf of bread in Germany in 1929. I almost needed a wheelbarrow to transport the full amount.