Samsung Group, Korea's foremost chaebol, is beleaguered by a number of troubles that could deal severe blows to the family-owned conglomerate. In addition to the "X-File" case, the group should grapple with a host of outstanding legal battles and a pending bill that may urge it to revamp its ownership. Samsung is in damage control mode, but is facing a daunting task to tide over the hardships amid its deteriorating image and growing social pressure to check the sprawling group. Samsung has been a source of national pride with its flagship affiliates like Samsung Electronics and Samsung SDI leading the world in cell phones, flat-panel displays and semiconductors. However, concerns have flared up that the chaebol's predominant presence oversteps the bounds to the extent that its clout can overwhelm the whole society. Some people have even called Korea the "Republic of Samsung," the metaphor to stress the urgent need for the society to bring the group under control. Samsung accounts for roughly a fifth of Korea's exports and pays about 7 percent of all taxes collected here, a bill totaling more than $5 billion a year. The anti-Samsung sentiment was further aggravated late last month when an audio tape made by the nation's spy agency in 1997 via wiretapping conversations between Samsung vice chairman Lee Haksoo and Ambassador to the U.S. Hong Seok-hyun, then head of Samsung-affiliated daily the JoongAng Ilbo, came to the light. They reportedly discussed Samsung's provision of slush funds to presidential candidates in 1997 and the scandal is currently under investigation. The "Samsunggate" already weighed on the group because vice-chairman Lee faced a summons and Hong tendered a resignation from his hard-earned post. Bad News Line Up for Samsung And more bad news is awaiting the group including a slew of legal battles and a bill that might prod Samsung to overhaul its ownership structure. A Seoul court will hold the final hearing today on a trial based on charges that former Samsung executives illegally helped group chairman Lee Kun-hee transfer wealth to his children. The court will decide soon on the claim that Samsung handed over convertible bonds (CBs) of Everland Amusement Park, the group's de facto holding company, to Lee's only son Jae-yong and two daughters at 7,700 won a share, about one-tenth of market value. Plaintiffs, composed of 43 law professors, insisted Samsung used the CBs to give the control of Everland to Jae-yong, Samsung heir apparent, without paying much tax. The prosecution contended the CB issuance incurred losses of 97 billion won to Everland and sought prison terms for Her Tae-hak, former Everland president that is responsible for the bond issuing, and current head Park No-bin. If the court sides with the prosecution, Samsung is likely to suffer from setbacks in handing over chairman Lee's reins of the group to Jae-yong. Another time bomb waiting to go off for Samsung is the bill on revised financial restructuring laws geared toward forcing financial units of chaebol to sell their excess shares in non-financial subsidiaries. Earlier this year, Rep. Park Young-sun of the ruling Uri Party and 24 other lawmakers submitted the revision to the National Assembly, which will check it this autumn. If the Assembly gives a nod to the bill, chaebol's financial units will have to divest all or part of the shares exceeding 5 percent in other affiliates. The clause is especially vexing for Samsung because the group's financial unit, Samsung Card, is the top shareholder of Everland at a 25.64-percent share followed by Jae-yong's 25.1-percent holding. Accordingly, the revision is likely to prompt Samsung to change its ownership structure, of which summit is occupied by the unlisted holding company Everland. Experts predict Samsung would struggle to overcome the imminent troubles with a blizzard of public antipathy against the top chaebol sprouting. "The father-to-son power shift would be the biggest challenge for Samsung. Thus far, the group has been smart enough to find loopholes in the system to cope with the difficulties," a Seoul university professor said. "But things are different now as anti- Samsung sentiment soars across the country. Actually, it is high time to think whether the old chaebol system still works that founding families continue to exercise substantial control despite small direct shareholdings."