Samsung's actual head arrested for his role in corruption scandal

By Park Sae-jin Posted : February 17, 2017, 06:27 Updated : February 17, 2017, 06:27

[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]


The de facto head of South Korea's top conglomerate, Samsung Group, was arrested Friday on multiple charges including bribery and embezzlement over his alleged money-for-favor exchange with President Park Geun-hye.

A court issued a warrant to arrest Samsung Electronics vice chairman Jay Y. Lee, who was accused of providing bribes in an attempt to facilitate the succession of Samsung's leadership.

Samsung has called for leniency, citing the economic impact of Lee's imprisonment. But prosecutors regard his arrest as instrumental in bringing criminal charges against Park who was suspended after being impeached in parliament.

Top officials of the family-run conglomerates or "chaebol" have made regular court appearances on various charges. Some have received heavy jail terms, only for them to be pardoned or released on early parole.

The corruption scandal fanned public sentiment against corporate donations, which have long been a controversial issue in South Korea due to concern about collusive ties between businessmen and politicians. In a bid to refresh its image, Samsung withdrew from the Federation of Korean Industries, an influential business lobby group.

Lee was accused of donating some 43 billion won to Park's crony Choi Soon-sil, who is on trial for meddling in state affairs and pocketing corporate money.

Samsung is suspected of bankrolling the equestrian training of Choi's 21-year-old daughter, Chung Yoo-ra, who has been held in Denmark, in return for the state-run pension fund's backing of a merger deal between Samsung subsidiaries in 2015.

Prosecutors contend that with Park's help, Samsung received preferential treatment from the Fair Trade Commission, an anti-trust watchdog.

Samsung was also accused of sending cash abroad illegally and hiding criminal proceeds in buying equestrian horses for Choi's daughter with a false contract.

Lim Chang-won = cwlim34@ajunews.com
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