As if Samsung already didn’t have enough to stress concerning following its Galaxy Note 7 debacle, the company’s future is currently vulnerable by a groundwork into its leader’s alleged illegal dealings with the South Korean government.
Bloomberg reports that Samsung Group’s de facto head, Lee Jae-yong (aka Jay Y Lee) is being defendant by a team of prosecutors in south korea of paying Choi Soon-sil, a detailed intimate of the country’s President Park Geun-hye in exchange for the government’s support in his succession within the company, and they’re currently seeking his arrest.
Lee has been underneath the scanner since last month, once the prosecution group formed to investigate whether a number of companies and conglomerates – together with Samsung – were concerned in bribing Choi Soon-sil to secure political favors. he's believed to own oiled the wheels with over $36 million in payments to Choi Soon-sil.
A bit of background regarding the forged of characters: Choi Soon-sil is that the female offspring of a Korean cult leader and was near the country’s former president – such a lot so she was concerned in creating selections concerning governmental organizations and policies.
The discovery of her involvement in these matters and her influence over the country’s leader soon saw President Park Geun-hye impeached. In November, she was accused of colluding with Park to coerce local firms to “donate” tens of millions of dollars to non-profit organizations, which she then accessed for her own benefit.
Jay Y Lee is the son of Lee Kun-hee, Chairman of Samsung Group and the head of South Korea’s richest family. He is set to take over from his father, who’s been in hospital since he suffered a heart attack in 2014.
While the court is nonetheless to approve the warrant for Lee’s arrest (a hearing is scheduled for Wednesday), it might spell disaster for Samsung: Following the Note 7 recall, the company’s reputation has already been blemished and variant greenbacks in profit are lost. Its shares have born any since news of Lee’s hearing was proclaimed.
A prosecution spokesperson said last week that after being interrogated for 22 hours without a break, Jay Y Lee denied some of the suspicions against him, but had admitted to others.
No matter whether the court decides to approve or deny the arrest warrant, it’ll take a lot more than a good phone or two to restore South Korea’s faith in Samsung.
South Korea Prosecutor Seeks Arrest of Samsung’s Jay Y. Lee on Bloomberg