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Samsung's Jay Y. Lee To Face More Questions By Prosecutors On Allegations Of Bribery And Embezzlement

By February 13, 2017 at 7:03 am
Samsung (Photo : Photo: Getty Images)

Samsung Group's Jay Y Lee will again be questioned by a special prosecutor on allegations of bribery and embezzlement. This issue may potentially be another damaging blow to Samsung after their Galaxy Note 7 exploding battery problems.

Lee is the head of the Samsung Group and vice chairman of Samsung Electronics Co. The head was called in for questioning in Monday morning as well as two other executives which include Samsung Electronics President Park Sang-jin. The allegations on these Samsung executives may have contributed to Samsung's shares falling to 1 percent to 1,900,00 won in Seoul.

Lee is accused of participating in payments the company made to close friend South Korean President Park Geun-hye. The South Korean President was recently impeached in December over claims of her relationship with a cult leader.

Prosecutors claim that Samsung gave payments to the impeached President for the company's succession planning. But a Seoul court has rejected the prosecutor's request to arrest Lee on Jan 19 due to lack of evidence. The court says that there wasn't enough evidence to keep Lee in jail based on the facts presented about the various charges on the Samsung executive.

Meanwhile the prosecutors have yet to decide whether to seek an arrest warrant for Lee after receiving new information from Monday's investigation. A prolonged investigation over the accused executives and the ousted President could potentially derail Samsung's plans with some major management plans already delayed.

Samsung currently has 60 affiliate companies from various industries including electronics to insurance and pharmaceuticals. The company has constantly denied the allegations it faces regarding giving the recently impeached president payments in return for political favors which were meant to help Samsung's rise and development.

Besides the allegations, Samsung has had its share of bad luck since last year. The most prominent of which is the Note Galaxy 7's exploding batteries which caused the company millions in revenue as well as the recall of the entire supply of the smartphone.

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