South Korea wants Samsung heir arrested
Bribery charges add to deepening scandal
South Korea’s special prosecutor sought an arrest warrant Monday for Samsung Electronics heir apparent Lee Jae Yong on bribery charges, drawing the executive into the country’s deepening political scandal and increasing potential economic uncertainty for the tech giant.
The move came after investigators questioned the executive of the world’s largest smartphone maker last week on suspicion he paid an estimated $36 million in bribes to organizations tied to Choi Soon Sil, a friend of impeached South Korean President Park Geun Hye and a key figure in the scandal, according to The Korea Times and other media reports.
The executive, known as Jay Y. Lee in the West, is also under suspicion of embezzlement and perjury, according to reports, which cited the warrant application.
The action could raise questions about the corporate leadership of Samsung, which separately has struggled to determine the problem responsible for causing the company’s Galaxy Note 7 smartphones to burst into flames. The problem forced the company to issue a recall expected to cost billions of dollars.
It is considered unusual for South Korean prosecutors to seek the arrest of an executive who symbolizes the future of South Korea’s most important familycontrolled conglomerates be- cause such leaders are usually considered vital for the national economy. Lee, 48, became the acting head of Samsung in 2014 after his father, Lee Kun Hee, suffered a heart attack. Lee Kyu Chul, a spokesman for the special prosecutor’s office, said that “while the country’s economic conditions are important, upholding justice takes precedence.”
Calling the decision “difficult to agree with,” Samsung issued a formal statement saying the company “did not make contributions in order to receive favors.”
“In particular, we find it hard to accept the special prosecutor’s argument that Samsung has made improper requests related to the merger of Samsung affiliates or the leadership transition,” the company said. “We believe the court will make the appropriate judgment on this matter.”
A court is likely to review the prosecutors’ request Wednesday.