Samsung Electronics Downplays Probe

SEOUL, South Korea – A Samsung Electronics Co. official said Wednesday that a bribery scandal engulfing the Samsung Group conglomerate is no cause for concern as he outlined ambitious growth plans for the technology giant.

"We are unfazed by all this," Chu Woo-sik, head of investor relations at Samsung Electronics, told a forum of investors and analysts.

He told the crowd the scandal was "nothing to worry about" and that "truth will prevail."

Korean prosecutors this month launched a probe into allegations that Samsung Group officials kept a slush fund and bribed prosecutors, judges and lawmakers. President Roh Moo-hyun has approved an independent investigation into the allegations, which were made by a former Samsung lawyer.

Among other claims, Kim Yong-chul, a former prosecutor and former Samsung legal affairs official, said the company operated a $215 million slush fund to bribe prosecutors, judges and government officials.

Lee Kun-hee, the chairman of Samsung Electronics, the group’s flagship company, and other officials have reportedly been banned by prosecutors from traveling overseas since the probe began.

Chu said it was "worrisome" that the "whole environment is so unstable in terms of how we would operate in the future." But he said Samsung would do "whatever is needed to raise the competitiveness of this company."

He predicted a dramatic increase in sales and profits but said the company must seek new areas of growth such as printers and computer chips.

"We are also seeking opportunities in energy, bio(tech) and health and the environment," Chu said. "So we are looking to discover what’s going to be the next growth engine for our company."

Chu outlined what he called a "grand scheme" of achieving by the year 2012 a 50 percent increase in sales to $150 billion with profits of $20 billion.

Samsung expects to record consolidated sales of $100 billion this year for the first time.