Home > Industries > Samsung's Lee Jae-young Arrested In South Korea, Prosecutors To File More Charges
Industries

Samsung's Lee Jae-young Arrested In South Korea, Prosecutors To File More Charges

By February 17, 2017 at 6:15 am
Samsung (Photo : Photo: Getty Images)

Samsung's Lee Jae-young has been arrested in South Korea after allegations of bribery and other chargers. Lee's arrest comes after the impeachment of South Korean President Park Geunh-hye which is reported to be linked to the Samsung executive.

The tech company is accused of giving donations to non profit foundations in exchange for government favors that would help with Samsung's progress. The organizations are operated by Choi Soon-sil who is a friend of the impeached president. However, both Lee and Samsung deny the allegations.

Lee was first questioned by prosecutors in January but decided not to arrest him. He was then questioned for a second time this week. Finally, on Friday the court acknowledged that it was necessary to arrest Lee in light of the newly added criminal charge and evidence presented.

The prosecution team will now have 20 days to file formal charges against Lee. The arrest however, does not reflect the court opinion on Lee's case. But it considers the case as something potentially serious and assumes a flight risk.

Lee is accused of giving donations worth 41 billion won to organizations linked to the president. The donations were supposed to win the government support for a restructuring of Samsung. The restructuring will lead to a smooth leadership transition in favor of Lee. Meanwhile Samsung has confirmed in December that they have given donations amounting to 20.4 billion won on two foundations but denies it was done for favors.

This again is another damaging blow to the tech giant following the Samsung Galaxy Note 7's battery issue. The exploding batteries led Samsung to recall every unit of the smartphone. The recall cost them millions in lost revenue.

Hanjin, another Korean company will now file for bankruptcy this week after amassing billions in debt. This will be the second international Korean company whose had issues recently.

Like Us on Facebook