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Samsung Group’s Jay Y. Lee was formally arrested on allegations of bribery, perjury and embezzlement, an extraordinary step that jeopardises the executive’s ascent to the top role at the world’s biggest smartphone maker.
The Seoul Central District Court issued the warrant for Lee’s arrest early Friday. Including procedural steps and appeals, it may take as long as 18 months for a trial and verdict. The decision was made because of the risk that he might destroy evidence or flee, a court spokesperson said.
Investigators are looking into whether the vice chairman of Samsung was involved in providing as much as 43bn won (£30.4m) to benefit a close friend of South Korean President Park Geun-hye, in exchange for government support of his management succession. Prosecutors allege that Lee, 48, funded Park’s associates as he tried to consolidate control over the sprawling conglomerate founded by his grandfather.
Lee, who had been waiting for the court’s decision at a detention center in Seoul, will remain there as a result of the arrest warrant. The court rejected the prosecutor’s request to arrest Samsung Electronics President Park Sang-Jin. With Lee under detention, Park will probably assume some of Lee’s responsibilities.
“We will do our best to ensure that the truth is revealed in future court proceedings,” Samsung Group said in a statement. The shares of Samsung fell less than 1 percent in Seoul. Prior to the arrest, the stock had climbed 5.5 percent this year, following a 43 percent rally in 2016.
Read more here. (Independent UK)
The Seoul Central District Court issued the warrant for Lee’s arrest early Friday. Including procedural steps and appeals, it may take as long as 18 months for a trial and verdict. The decision was made because of the risk that he might destroy evidence or flee, a court spokesperson said.
Investigators are looking into whether the vice chairman of Samsung was involved in providing as much as 43bn won (£30.4m) to benefit a close friend of South Korean President Park Geun-hye, in exchange for government support of his management succession. Prosecutors allege that Lee, 48, funded Park’s associates as he tried to consolidate control over the sprawling conglomerate founded by his grandfather.
Lee, who had been waiting for the court’s decision at a detention center in Seoul, will remain there as a result of the arrest warrant. The court rejected the prosecutor’s request to arrest Samsung Electronics President Park Sang-Jin. With Lee under detention, Park will probably assume some of Lee’s responsibilities.
“We will do our best to ensure that the truth is revealed in future court proceedings,” Samsung Group said in a statement. The shares of Samsung fell less than 1 percent in Seoul. Prior to the arrest, the stock had climbed 5.5 percent this year, following a 43 percent rally in 2016.
Read more here. (Independent UK)
