Court to decide whether to jail embattled Samsung heir again By Reuters

Court to decide whether to jail embattled Samsung heir again


© Reuters. FILE PHOTO: Samsung Electronics Vice Chairman, Jay Y. Lee, speaks during a news conference at a company’s office building in Seoul

SEOUL (Reuters) – A South Korean court will rule as soon as Monday whether to send Samsung (KS:) Group heir Jay Y. Lee back to jail after more than two years of freedom, as new allegations dog the executive and cast a pall over the country’s top conglomerate.

Lee, 51, is scheduled to appear in the Seoul Central District Court at 10:30 a.m. (0230 GMT), then head to a detention centre to await the judge’s decision, expected as early as same day.

Prosecutors on Thursday asked the court to issue an arrest warrant against Lee on suspicion of stock-price manipulation, audit-rule violations and other offences, culminating a probe into accounting fraud and a contentious 2015 merger of two Samsung affiliates that they said helped smooth Lee’s succession.

Samsung on Friday denied the stock-manipulation allegation against Lee, saying it was “beyond common sense” to claim Lee was involved in the decision-making.

In a further statement over the weekend, the group said the lengthy probe is weighing on management, which is in a “crisis” at a time when Covid-19 and U.S.-China trade disputes are adding to uncertainty.

Samsung said “groundless, incorrect and speculative media reports” about Lee would “never be desirable, not only for Samsung but for the future of the Korean economy.”

The company declined to make Lee available for comment.

He served in jail for about one year until Feb. 2018 for his role in a bribery scandal involving former President Park Geun-hye.

He is also on trial on charges that he gave horses as gifts to win government support for the merger that increased his control of the group – and of its crown jewel, Samsung Electronics (OTC:) Co, South Korea’s biggest company – as he was preparing to succeed from his ailing father, Lee Kun-hee.

“If he is arrested, this will further hurt the reputation of Lee and Samsung. There will more questions about his legitimacy as the CEO and successor of the company,” Chang Sea-jin, business professor at Korea Advanced Institute of Science & Technology. “The public would think, ‘Oh he may have done something wrong again.'”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME