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Special prosecutors in South Korea have indicted Samsung Chairman Lee Kun-hee on charges of tax evasion and breach of trust. The charges against Lee, announced Thursday in Seoul, were brought in connection with a three-month probe of alleged corruption at South Korea's biggest family-run conglomerates, known as "chaebol." But prosecutors say they will not place the 66-year-old Lee under arrest.
The probe was launched in January after Samsung's former chief attorney said the company had created a special slush fund to bribe government officials. Lee was summoned before the special prosecutors twice this month to testify. The special prosecutors cleared the company of the bribery allegations, but acknowledged there was a conspiracy at the firm to illegally transfer control of Samsung to Lee's son, and to hide billions of dollars of his assets. The company released a statement Thursday apologizing for the scandal. It says it will announce new reform plans next week.
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