Samsung Fined for Campaign Contributions

Samsung America Inc. pleaded guilty in federal court Monday to making $10,000 in illegal corporate contributions to Rep. Jay C. Kim’s election campaign and paid a $150,000 fine.

That raised to $1 million the amount of fines the government has collected in its prosecution of corporations that illegally funneled money into the Diamond Bar Republican’s 1992 race.

In December, Hyundai Motors America paid $600,000 in fines and Korean Airlines paid $250,000 after entering into similar plea agreements with the U.S. attorney’s office.

Corporations and foreigners are barred from contributing to federal election campaigns.

In exchange for Samsung America’s misdemeanor plea Monday, the federal government agreed to end its investigation of more serious possible crimes, including obstruction of justice, conspiracy and mail fraud, by the company and its employees.

A subsidiary of South Korea’s biggest conglomerate, Samsung America promised to assist the government in its ongoing investigation of campaign finance fraud.

The company already has provided the government with “substantial assistance” in its investigation of other possible offenders, U.S. Dist. Judge Lourdes G. Baird said in accepting the plea.

No further details were disclosed, but Assistant U.S. Attys. Stephen A. Mansfield and Edward B. Moreton Jr. have said the investigation is continuing.

All three corporations convicted so far are headquartered in South Korea, Kim’s birthplace.

Kim, the first Korean American elected to Congress, has been under investigation but has not been indicted. He contends that he was unaware of the corporations’ donations to his campaign.

According to the government, Samsung America had employee conduits contribute to the Jay Kim for Congress Campaign Committee.

On Sept. 15, 1992, a manager, an assistant manager, a credit coordinator and two accountants at the company’s office in La Mirada were each given $2,000 in cash by Samsung. Over the next two days each sent personal checks for that amount to Kim’s campaign.

Employee conduits also were used by Hyundai, which contributed $4,500 to Kim’s campaign, and by Korean Airlines, which donated $5,000.

Appearing in court Monday on behalf of Samsung America was Nam Yun Cho, subsidiary president, who spoke through an interpreter. Cho was represented by defense attorney Brian A. Sun of Santa Monica.