Samsung boss will be charged with bribery and embezzlement

Posted March 01, 2017

"Samsung will choose to stay conservative in planning business strategy rather than implementing aggressive management decisions, such as cutting big overseas deals or making huge investments", said Park Ju-gun, president of Seoul-based corporate watchdog CEOSCORE.

Most scandalous is that Lee was tipped to lead Samsung into the future.

Lee was once the face of the new Samsung, but now follows in the footsteps of his father, Samsung Electronics chairman Lee Kun-hee.

The New York Times reports that Lee, who was arrested on February 17, was indicted on bribery and embezzlement charges while four other senior executives - three that have resigned - were indicted for the same charges, but not arrested. Other Samsung executives that will be indicted include Corporate Strategy Office Vice Chairman Choi Gee-sung, President Chang Choong-ki, head of sports strategy Hwang Seong-soo and Samsung Electronics President Park Sang-jin. The office allegedly orchestrated the bribe of Choi Soon-sil to secure the 2015 merger, a crucial step in strengthening the younger Lee's grip on Samsung.

A probe team spokesperson cited by Yonhap News Agency said four other Samsung executives are among 17 suspects set to be indicted on the final day of the special prosecution's 70-day term, bringing the total number to 30.

Lee was arrested earlier this month, marking the first time that the head of the country's largest family-run business, or "chaebol", has been detained. He is accused of paying 43 billion won (£30 million) to a close friend of disgraced President Park in return for favours that helped him to gain control of the conglomerate.

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"Chung added: "[In the past] Samsung has dissolved group-controlling organisations when it got caught in breach of laws, only to revive them afterwards under different names".

Lee's involvement in the scandal around the shocking impeachment of South Korea's President Ms.Park was a big part of the indictment.

Lee transferred tens of millions of dollars to organizations controlled by Choi Soon-sil, confident to the former president and key figure in the entire case.

"The Jay Y. Lee indictment will impact Samsung's long-term strategic planning and has already impacted internal personnel to some degree, but is unlikely to have an influence on day-to-day operations", said Scott A. Snyder, senior fellow for Korea Studies and director of the Program on U.S. -Korea Policy at the Council on Foreign Relations.

However, South Korea's constitutional court is expected to declare the results based on the impeachment votes, before the retirement of Lee Jung-mi, the acting chief justice, on March 13.