SEOUL - A FORMER top legal executive at Samsung Group on Monday made fresh accusations against the country's largest conglomerate, saying it had used subsidiaries to help create a 200 billion won (S$311 million) slush fund.

Samsung officials were not immediately available for comment but the company has previously denied charges by Kim Yong Cheol, who used to run a major legal division but now says he wants to blow the whistle on corruption.

'Samsung has created a large-scale slush fund,' MR Kim told a news conference, the second this month accusing his former employer of impropriety.

Some of the money was used to buy art, he said, but otherwise did not specify what it was used for.

Earlier this month, Mr Kim accused Samsung of routinely bribing prosecutors and politicians to quash investigations concerning improper company management.

Last week, South Korea's parliament voted to allow an independent counsel to investigate the Samsung Group.

Tied to presidential elections

The bill also authorises an investigation into whether Samsung made improper payments during campaigning for the 2002 presidential election. President Roh Moo Hyun won that election.

Mr Roh, who has about three months left in office, is considering vetoing the bill, his office has said.

At the weekend, Mr Roh denied receiving money from Samsung in the form of a congratulatory gift for winning the 2002 election.

Separately, prosecutors are putting together their own team of about 55 people that this week will start looking into the allegations Samsung kept a secret slush fund, an official said.

Samsung wields enormous power in South Korea by its sheer size. The group, with 58 affiliates as of late June, had combined sales of US$159 billion (S$229 billion) in 2006, about one-sixth of the country's gross domestic product for that year. -- REUTERS