KYODO NEWS - Nov 5, 2018 - 21:45 | Urgent, All, World

SoftBank Group Corp. CEO Masayoshi Son said Monday that its Saudi-backed fund will continue operating despite the controversial murder of journalist Jamal Khashoggi at the Saudi consulate in Istanbul.

While condemning the murder, Son said at a press conference that his company will fulfill its "responsibility" for the operation of the nearly $100-billion Vision Fund, which was launched last year to invest in pioneering technologies and entrepreneurs with partners including Saudi Arabia's sovereign wealth fund.

The chairman of the Japanese telecommunications and internet services giant also played down the impact of the incident, saying that he has not heard many cases in which recipients of investments have rejected money from the fund.

Concerns have grown over the fate of the fund after global outcry was sparked following last month's killing of Khashoggi, a U.S.-based journalist who was critical of the Saudi regime.

Allegations have swirled about the role in the incident of Saudi Crown Prince Mohammed bin Salman, the de facto leader of the kingdom.

Saudi Arabia's sovereign wealth fund invested $45 billion, with the country hoping that the Vision Fund will help diversify its oil-dependent economy. The crown prince is known to have close ties to Son and has played a key role in the launch of the Softbank investment vehicle.

(Jamal Khashoggi)

"These funds are important for the people of Saudi (Arabia) and for their future economic diversification...It is true that there has been a tragic accident, but I must carry out the responsibility toward the Saudi people's future, without turning our backs on them," Son said.

The CEO said he met the Saudi prince when he visited the country last month. The prince told Son that he thought the incident should not have happened but did not elaborate on whether he was involved, according to Son.

Son said he has urged the Saudi government to "get to the bottom of the incident."

For SoftBank, the fund has helped increase its profitability.

The company said Monday its group net profit rose around eight-fold in the April-September period to 840.10 billion yen ($7.4 billion), a record high for a first half.

Its group operating profit also rose 62.4 percent to a record 1.42 trillion yen, to which the fund attributed more than 600 billion yen. Consolidated sales stood at 4.65 trillion yen, up 5.5 percent from the previous year.

The company did not provide a forecast for the full current fiscal year.

The chairman also said the company will cut 40 percent of its workforce involved in the domestic communications business to offer services at lower prices and to streamline operations.