Updated Dec.17,2004 18:59 KST

New U.S. Envoy Appointment Sparks Talk of Samsung Collusion
Joong Ang Ilbo Chairman Hong Seok-hyun makes his way to the office Friday morning after being appointed as the next Korean ambassador to the United States.

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JoongAng Ilbo Chairman Hong Seok-hyun's sudden appointment as Korea's ambassador to the United States and his affiliation with the powerful Samsung Group as brother-in-law of Samsung CEO Lee Kun-hee has fed rumors of collusion between the chaebol and political world.

There are two main pillars on which the rumors rest. First is that Samsung involved itself in nominating candiates for the post, and secondly, that the firm would support Hong's ambassadorial activities by making use of Samsung's powerful overseas network. Hong formerly worked as vice president for one of the conglomerate's business arms.

Local press reported Friday that Samsung had submitted a report saying it needed to consider how to actively use its personal and physical network in the United States to support bilateral diplomatic efforts.

It strongly refuted the media reports, however, claiming they were nothing more than conjecture. One official said he understood how Hong's appointment looked auspicious regarding the company's interests, but stressed that the two issues were not related, and that political decisions and proposals were not within the company's jurisdiction.

Commenting on the use of Samsung's network, officials said that as in the past, the company was ready to cooperate at any time to use its network to advance national interests.

Some analysts argue that Cheong Wa Dae's selection of Hong as ambassador to the U.S. was made with support from Samsung in mind. They claim that rather than choose a highly influential figure to try and wrestle with U.S. diplomats, the government might deem it more advantageous to capitalize on the overseas network of Samsung, which has grown into a global brand, and cooperate economically.

Other observers say that Hong's family connections - his wife is Samsung CEO Lee Kun-hee's sister - might see him play the role of a conduit through which Samsung conveys its thoughts and positions more directly to Cheong Wa Dae and the government.

(Yi In-yeol, yiyul@chosun.com )