Samsung chief awaits court decision on arrest

The Korea Times

The Korea Times

National

Tue, October 3, 2023 | 09:40

Law & Crime

Samsung chief awaits court decision on arrest

Posted : 2017-01-18 10:42

Updated : 2017-01-18 22:13

Samsung Electronics Vice Chairman Lee Jae-yong encounters reporters on his way out from the Seoul Central District Court in Seoul, Wednesday, after attending a hearing over an arrest warrant requested for him on criminal charges, including giving bribes to President Park Geun-hye's close friend in return for government favors.
/ Korea Times photo by Shim Hyun-chul

By Jung Min-ho

Samsung Electronics Vice Chairman Lee Jae-yong attended a four-hour court hearing, Wednesday, held to look into the validity of the arrest warrant requested for him on charges of bribery, embezzlement and perjury.

The Seoul Central District Court reviewed the warrant request for Lee, the Samsung Group's de facto leader, overnight over allegations that he offered 43 billion won ($37 million) in bribes to President Park Geun-hye's longtime friend Choi-Soon-sil in return for business favors.

The investigation team led by special prosecutor Park Young-soo concluded that Lee was directly involved in the bribery and requested the warrant for him Monday.

A decision is expected near or after midnight.

Lee appeared in front of the court at around 9:55 a.m. As he walked in, he did not answer a flurry of questions from reporters.

Investigators have alleged that Samsung gave the bribes to Choi and her cronies through various channels in the disguise of "donations."

This, investigators believe, was made to take advantage of Choi's friendship with President Park, who later allegedly pressured the National Pension Service (NPS) to vote for a merger of two Samsung units in 2015 ― a crucial decision for Lee to tighten his control of the group's management.

Analysts against arrest of Samsung heir

2017-01-17 16:47

Leadership vacuum to weigh heavily on Samsung

2017-01-16 17:11 | Companies

Samsung stocks fluctuate over arrest warrant for heir Lee

2017-01-16 16:50 | Tech

Arrest warrant requested for Samsung chief in corruption scandal

2017-01-16 13:30 | National

Judge Cho Eui-yeon, who previously approved the arrest warrant for NPS Chairman Moon Hyung-pyo concerning the bribery case, will determine Lee's fate based on the seriousness of his crime and the risk of the destruction of evidence among other factors.

Samsung's legal representatives said Lee was a victim ― not an accomplice ― in the scandal, saying the company did not support the Choi-related businesses in return for favors.

"We sufficiently clarified allegations to the court based on facts and the principles of law," Lee's lawyer Song Woo-chul told reporters after the hearing. "We are certain that the court will make a wise decision."

The bone of contention, he said, was whether Samsung made donations in exchange for specific favors.

Investigators say evidence shows that Samsung talked with Choi not only about ways to deliver the money but also expected tax issues following the "donations."

When the NPS, a key shareholder of the two Samsung units ― Samsung C&T and Cheil Industries ― voted for their merger despite foreseeable losses and the opposition of many shareholders, many suspected that President Park was behind the deal.

If investigators prove the alleged link between Samsung's support and the NPS decision, he could face bribery charges, which could put him behind bars for up to five years. With other charges for embezzlement and perjury, the punishment can be stricter.

An approval of the warrant will give momentum to investigators, who are preparing to question President Park soon over her role in the scandal, which has engulfed her administration. If the court rejects it, however, their investigation may lose steam.

After questioning three other Samsung executives, including Vice Chairman Choi Gee-sung, investigators decided not to seek arrest warrants for them, concluding that they just carried out Lee's orders.

The Samsung scion has led the company since his father, Samsung Group Chairman Lee Kun-hee, collapsed from an acute myocardial infarction in 2014.

mj6c2@ktimes.com