The special counsel’s team disclosed the outcome of its investigation in a press conference at its office in Hannam-dong, Seoul on Thursday afternoon, wrapping up a 99-day inquiry into corruption allegations against the nation's top conglomerate.

A special prosecutor Cho Joon-woong announces investigation results during a press conference at the special prosecutor's office in Seoul on Thursday. /AP Photo

On allegations about the underhand transfer of group control to Lee Kun-hee's son, Lee and key executives of the group’s strategic planning office such as Lee Hak-soo, Kim In-joo and vice president Choi Kwang-hae were charged with causing a loss of at least W96.9 billion (US$1=992) to the Everland amusement park, the group’s quasi holding company, by selling convertible bonds at dumping prices to Lee's son Jae-yong.

The investigators said move was led by the strategic planning office with Lee Kun-hee's approval. Lee Kun-hee and others were also charged with causing a loss of W153.9 billion to Samsung SDS by getting involved in the issuance of bonds with warrants at knock-down prices and allowing Lee Jae-yong to benefit from the process.

On the allegations of setting up massive slush funds, Lee Kun-hee and others were charged with funneling W4.5 trillion worth of stocks and cash through a total of 1,199 accounts using Samsung staffers' names and evading capital gains tax in the amount of W112.8 billion from stock transactions.

Lee was additionally charged with violating the Securities and Exchange Act by failing to report stock transactions through the borrowed-name accounts to the securities supervisory authorities. But investigators concluded the controversial W4.5 trillion hidden in the borrowed-name accounts was not raised through Samsung subsidiaries but Lee's personal assets.

Investigators also found no evidence of claims by whistleblower Kim Yong-chul that the conglomerate regularly bribed politicians and senior government officials.

The special counsel cleared Lee Jae-yong and the chairman’s brother-in-law Hong Seok-hyun, chairman of the JoongAng Ilbo newspaper of all charges. Hong Ra-hee, Lee Kun-hee's wife and the director of the Leeum Samsung Museum of Art has also been cleared of involvement.

The special counsel said, "Astronomical amounts of money were involved in the undue profiting by malfeasance and tax evasion perpetrated by those who were indicted today. All are subject to heavy penalties. With this special counsel probe as momentum, I hope Samsung will heal its wounds and emerge once again as an exceptional global enterprise."

Critics say the investigators’ decision to arrest none of those involved showed a determination to go easy on the Samsung executives.

(englishnews@chosun.com )