Head of Samsung faces arrest in presidential corruption scandal

(credit: Neilson Barnard / Getty Images)

Lee Jae-yong, the Vice Chairman of Samsung Group and acting head of the company, could soon be facing formal corruption charges. South Korean prosecutors are currently seeking the arrest of the Samsung heir, accusing him of bribery, embezzlement, and perjury. The warrant must first be approved by a court, which will convene Wednesday.

The accusation sucks Samsung into the ongoing corruption scandal that has rocked South Korean, where impeachment hearings for President Park Geun-hye have already started. Lee is accused of paying bribes to a nonprofit connected to the South Korean president in exchange for approval of a merger of two Samsung Group affiliates—Cheil Industries and Samsung C&T—in 2015. Once merged, the two companies became one of the largest investors in Samsung Electronics, solidifying the Lee family’s control over the crown jewel of the Samsung empire. The prosecutor’s office estimated that the total size of the alleged bridges was ₩43 billion ($36 million).

The possible arrest of Lee comes at a time when Samsung is still sorting through the Note 7 recall debacle, and it could interrupt Lee Jae-yong’s massive ongoing reorganization of Samsung Group.

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Source: Ars Technica – Head of Samsung faces arrest in presidential corruption scandal