PROSECUTORS have requested the arrest of Samsung heir Lee Jae-yong as a bribery suspect in the influence-peddling scandal that led to the impeachment of South Korea’s president.
The move is a departure from the leniency big businesses typically receive in the east Asian nation.
The 48-year-old vice-chairman at Samsung Electronics faces allegations of embezzlement, of lying under oath during a parliamentary hearing and of offering a bribe of 43 billion won (£30 million) to a long-time friend of impeached President Park Geun-hye.
The charges were set out by Lee Kyu-chul, a spokesman for a special prosecutors’ team investigating the political scandal.
It will surprise many that prosecutors requested the arrest of the man who symbolises the future of South Korea’s most important chaebol, as family-controlled conglomerates are known. Such leaders tend to be treated as vital to the national economy.
Samsung Electronics is South Korea’s most successful company and a source of pride for many who equate its huge global success with national prestige. The company has gone through a rough patch in the past half-year, however, after its latest premium smartphone, the Galaxy Note 7, was found to be prone to catching fire.
Prosecutors understood worries Lee’s arrest could hurt the economy, but “we believed that it was even more important to carry out justice,” the spokesman said.
A Seoul court said it will start reviewing the prosecutors’ request tomorrow. The process usually takes two to three days.
Samsung allegedly donated funds to various entities controlled by Choi Soon-sil, the jailed secretive confidante of the president. They included two non-profit foundations and a winter sports centre run by Choi’s niece. This allegedly happened while the firm was seeking the government’s help with a leadership succession within the Samsung group to Lee Jae-yong from his father who has been in hospital for more than two years.
It is alleged some of the money given to Choi was embezzled by the Samsung vice-chairman, the prosecutors’ spokesman said. He declined to disclose the exact amount. Samsung said it has never made donations to win favours.
Prosecutors also indicted ex-health minister Moon Hyung-pyo yesterday on charges he abused his power to compel the national pension fund to support a contentious Samsung merger in 2015.
Samsung said in a statement: “We cannot accept the special prosecutors’ argument that there were unlawful favours related to the merger or the leadership succession.”
The investigation of the Samsung chief could also target Park. Her impeachment is under review by the Constitutional Court, which will decide whether to restore her power or force her from office.
The prosecutors’ spokesman said investigators had evidence proving Park shared wealth with Choi and was an accomplice in the Samsung bribery case. They plan to summon Park and will then decide whether to name her as a suspect in the Samsung case, he said.
The national pension fund is the biggest shareholder in Samsung C&T. Its vote in favour of the firm’s merger with Cheil Industries helped facilitate the leadership succession, allowing Lee Jae-yong to increase his control over Samsung Electronics without spending his own money.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here