Samsung Electronics managers fined $73.5 million

A REPORT FROM Associated Press said that 10 leading executives at mighty chaebol Samsung were fined $73.5 million by a court which said they had mismanaged the firm's affairs.

The South Korean ruling, handed down by a court last Thurday, reflected penalties for internal trading and cross-funding.

The ruling came after a group of shareholders in Samsung decided to sue the firm in 1998, alleging that management sold shares to subsidiary firms at far lower prices than they should have.

Lee Kun-hee, chairman of Samsung Electronics, was ordered to refund over $5 million used as a bribe to politicos to gain contracts.

Nine other suits have been ordered to refund $68 million because they were guilty of mismanagement.

The success of the case is liekly to mean other executives of chaebols, family concerns, may be faced with similar charges in the future. µ