S. Korean <i> Chaebol </i> Vow Changes : Scandal: Prosecutors make it clear they’ll do nothing to impede empires’ foreign expansions.

Major South Korean conglomerates hit by indictments of their chairmen, who are suspected of bribing former President Roh Tae Woo, quickly vowed Tuesday to change their domestic business practices.

But prosecutors made it clear they will do nothing to impede the rapid expansion of South Korea’s industrial empires overseas, where their growth has become increasingly important to the domestic economy.

The chairmen of seven business groups--Samsung, Daewoo, Dong Ah, Daelim, Dongbu, Jinro and Daeho Construction--were indicted but not arrested. Early indications were that not only will they remain free pending conclusion of their trials, but also that they will be allowed to travel overseas. If convicted, they could get off with suspended sentences or fines.

Several of these chaebol-- especially Daewoo, with its globe-trotting chairman, Kim Woo Choong--depend heavily on direct overseas contacts and business activities by their top leaders.

The composite index on the Seoul stock exchange, reflecting an atmosphere of relief that the prosecutors’ actions were not more severe, rose 12.03 points, or 1.29%, to close at 946.98 on Tuesday.

“In order to minimize the economic impact, leniency has been given to businesses whose chairmen are doing a lot of work overseas, or which are doing large-scale projects overseas that if suspended could cause diplomatic problems,” chief investigator Ahn Kang Min told a news conference. Ahn said the heads of 35 firms had given Roh $370 million in bribes.

“The investigation was conducted with a national call to cut off traditional collusive ties between politics and business,” Ahn added.

The effect on overseas activity is being watched closely in California, where South Korean investors led by the giant chaebol have sunk $1.1 billion into Hollywood studios, semiconductor plants, office buildings and banks. South Korea is also the state’s fourth-largest export market, purchasing $5.5 billion worth of goods in 1994.

Just last month, AST Research Inc., a financially troubled Irvine computer company, got a $50-million infusion from Samsung Electronics, which had purchased a 40% stake in it earlier this year.

One World Media, a South Korean company controlled by Samsung’s founding family, owns an 11.1% stake in the DreamWorks SKG studio, and Hyundai Corp. has made several large high-tech purchases, including in Maxtor Corp., a San Jose disk drive maker.

Leaders of some other chaebol have been treated more harshly in the investigation of Roh’s slush fund, which he has admitted totaled $653 million. Roh has claimed the money came from political donations, not bribes.

The chairman of the Hanbo Group, Chung Tae Soo, was arrested on suspicion of bribery last week and indicted Tuesday. Authorities also issued an arrest warrant on bribery charges last week for the chairman of the Hanyang Group, Pae Jong Yol, whose whereabouts remained unknown.

Also indicted Tuesday, but on money-laundering charges, was the head of Daewoo Corp., part of the Daewoo Group. A bribery indictment against the chairman of Korea Petroleum Development Corp. was suspended because he was out of the country. The head of Chong Woo Construction has already served a prison term in a case now linked to the Roh slush fund.

“The ‘donations’ that Samsung made were not in any way related to or in pursuit of any special favors or privileges,” Samsung Group said in a statement. “The practice of making ‘donations’ was part of a political climate that was customary and particular to a specific period in our history. This recent turn of events will not in any way deter or hinder the progress and developments Samsung is currently pursuing overseas.”

Daewoo issued a statement saying that it will pursue a “managerial reform campaign, which includes greater managerial professionalism and independent affiliate operations.”

Moon Ki Hoon, an analyst at Ssangyong Investment & Securities Co., said Daewoo has moved further toward professional management than many chaebol and that it would be well-equipped to withstand the loss of Kim Woo Choong’s talents should that happen. . “Daewoo already is rather advanced in terms of ownership structure compared with other chaebol, “ Moon said.

Ahn, the chief investigator, said Tuesday that so far no U.S. companies have been investigated.

An opposition member of the National Assembly earlier alleged that Roh took as much as $150 million in bribes in connection with a $5.2-billion deal for South Korea to buy 120 F-16 jet fighters from General Dynamics Corp. The U.S. firm has denied the allegation.

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Staff writer Evelyn Iritani in Los Angeles contributed to this report.

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South Korean Indictments

The indictments Tuesday of the chairmen of seven South Korean industrial empires on charges of bribing government officials brings to eight the number of top executives accused of contributing to a massive political slush fund compiled by former President Roh Tae Woo. Prosecutors say the bribes won government favors that spurred the rapid growth of the family-controlled conglomerates, or chaebol , which have come to dominate South Korea’s economy. Those indicted:

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Amount of 1994 1994 alleged bribe Number of sales earnings Chairman (millions) Chaebol companies (billions) (billions) Lee Kun Hee $32.6 Samsung 55 $66.2 $1.81 Kim Woo Choong 31.3 Daewoo 22 26.7 0.44 Choi Won Sok 30.0 Dong Ah 14 5.5 0.08 Lee Joon Yong 9.1 Daelim 17 3.8 0.08 Kim Joon Ki 5.2 Dongbu 13 3.2 -0.03 Chung Tae Soo 19.6 Hanbo 13 1.7 0.09 Chang Jin Ho 13.1 Jinro 12 1.0 -0.08 Lee Kon 6.5 Daeho 3 0.1 0.03

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Ohter chaebol accused of giving bribes but whose chairmen were not indicted are, with amount of bribe: Hyundai, $32.6 million; LG (Lucky-Goldstar), $27.4 million; Sunkyong, $3.9 million; Ssangyong, $10.4 million; Kia, $5.2 million; Hanjin, $22.2 million; Lotte, $14.4 million; Hyosung, $9.8 million; Doosan, $2.6 million; Kolon, $2.6 million; Dongkuk, $3.9 million; Kumho, $9.1 million; Tongyang, $1.3 million; Haitai, $1.3 million; Kohap, $3.9 million; Miwon, $2.6 million; Sammi, $2.6 million; Hanil, $13.1 million.