Samsung Chief Lee Arrested In Corruption Investigation

According to Reuters, Samsung chief Jay Y. Lee was arrested on Friday over his alleged role in a corruption scandal that led parliament to impeach South Korean President Park Geun-hye. From the report: The 48-year-old Lee, vice chairman of Samsung Electronics Co Ltd (005930.KS), was taken into custody at the Seoul Detention Centre, where he had awaited the court’s decision following a day-long, closed-door hearing that ended on Thursday evening. The judge’s decision was announced at about 5:30 a.m. (2030 GMT) on Friday, more than 10 hours after Lee, the sprawling conglomerate’s third-generation leader, had left the court. The same court rejected a request from prosecutors last month to arrest Lee. On Tuesday, the special prosecutor’s office had requested a warrant to arrest him and another executive, Samsung Electronics president Park Sang-jin, on bribery and other charges. The prosecution said it had secured additional evidence and brought more charges against Lee in the latest warrant request. While Lee’s detention is not expected to hamper day-to-day operation of Samsung Group companies, which are run by professional managers, experts have said it could affect strategic decision-making by South Korea’s biggest conglomerate. Prosecutors have focused their investigations on Samsung’s relationship with Park, 65, who was impeached by parliament in December and has been stripped of her powers while the Constitutional Court decides whether to uphold her impeachment. They accused Samsung of paying bribes totaling 43 billion won ($37.74 million) to organizations linked to Choi to secure the government’s backing for a merger of two Samsung units. That funding includes Samsung’s sponsorship of the equestrian career of Choi’s daughter, who is in detention in Denmark, having been on a South Korean wanted list.


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