Samsung heir Lee Jae-yong arrested

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Mon, May 29, 2017 | 09:20

Investigations

Samsung heir Lee Jae-yong arrested

Posted : 2017-02-17 05:43

Updated : 2017-02-18 21:16

Lee Jae-yong, vice chairman of Samsung Electronics Co., is seen in his car at the Seoul Central District Court in southern Seoul, Thurdsay, after attending a hearing on the legitimacy of his arrest sought for the second time by special prosecutors for alleged bribery related to the merger of two of Samsung's affiliates involving impeached President Park Geun-hye. The court approved the arrest warrant early in the morning the following day. / Yonhap

By Kim Bo-eun

Samsung Electronics Vice Chairman Lee Jae-yong was put behind bars Friday after a Seoul court issued an arrest warrant for him on bribery charges in the influence-peddling scandal involving President Park Geun-hye and her close friend Choi Soon-sil.

Lee is the first leader in Samsung's 79-year history to be jailed on criminal charges. The independent counsel team investigating the scandal can detain Lee for up to 20 days before formally indicting him.

Judge Han Jung-seok of the Seoul Central District Court issued the warrant at 5:37 a.m., saying there were "sufficient grounds" for his arrest.

"Considering newly raised allegations and additional evidence, the need for confinement is recognized," Han said.

Lee avoided arrest last month when the court dismissed the counsel team's first request, citing a lack of evidence.

The claims against Lee revolve around a controversial merger between the electronics giant's construction arm, Samsung C&T, and another affiliate, Cheil Industries, in 2015. The merger was seen as critical for Lee to consolidate his leadership of the nation's biggest business empire.

The special prosecution team claims Samsung paid bribes totaling 43 billion won ($37.8 million) through two foundations set up by Choi in return for political support for the deal. Samsung has denied that it offered bribes or sought any favors from the President.

Following Lee's arrest, the counsel team said it would summon him to the team's office today for questioning.

"We will summon Samsung Vice Chairman Lee Jae-yong on Saturday. We will make sure that we establish grounds to indict him," team spokesman Lee Kyu-chul said at a press briefing.

Lee's arrest is expected to give a fresh impetus for the team's push to question the President in person.

Its attempt to hold face-to-face questioning of Park fell through after Cheong Wa Dae took issue with a media report disclosing the date of the interview.

On Thursday, the Seoul Administrative Court refused to allow the team to search Cheong Wa Dae, in a suit filed by the team, after it was denied entry into the presidential office earlier this month.

The court ruled that the team was not eligible to file a lawsuit and denied it the right to appeal, for the same reason.

However, at the briefing, the team spokesman said, "We will decide whether to appeal after reviewing the situation."

With the questioning of the President remaining, the team needs its mandate to be extended to continue the investigation.

The team asked acting President and Prime Minister Hwang Kyo-ahn to extend its mandate, Thursday.

After the Samsung heir was arrested, Hwang will come under growing pressure to accept the counsel team's request to extend the mandate, which expires at the end of February.

At the same time, the team said it will call in former presidential aide Woo Byung-woo today.

"We will summon and question former presidential secretary Woo as a suspect on charges of abuse of power, at 10 a.m., Saturday," Lee said.

Woo faces charges of overlooking or abetting Choi, who did not hold a government post, in meddling in state affairs.

He allegedly attempted to obstruct an independent presidential investigator's probe into the Mir and K-Sports foundations, and exerted influence to get him dismissed.

With the arrest of its chief, Samsung Group could face a major management crisis that could adversely affect its succession plan.

Immediately after Lee was detained, Samsung issued a terse one-line statement, saying: "We will do our best to ensure that the truth is revealed in the upcoming court proceedings."

Lee is vice-chairman of Samsung Electronics, but since his father, Lee Kun-hee, had a heart attack in 2014, he has been the de facto leader of the conglomerate.

bkim@ktimes.com

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