Samsung Chief Lee Arrested Under Corruption Case

Samsung Chief Lee Arrested Under Corruption Case

Samsung Group chief Jay Y. Lee was arrested at South Korea for his alleged role in a corruption scandal. He is a suspect in the “influence-peddling” scandal.

His family is known as the country’s richest family, but because of this scandal was taken into custody at the Soeul Detention Centre.  He further was being held in the single cell where a TV and a desk were provided for him.

Side-effects of Chief’s arrest:

Shares in flagship Samsung Electronics Co Ltd opened down to 1.2 per cent, while shares in Samsung C&T Corp, the de facto holding company of Samsung Group, opened down to 3.2 percent compared with the wider market’s drop of 0.45 percent

No decision had been made on whether Lee’s arrest would be contested or whether bail would be sought, a spokeswoman for Samsung Group said.

Prosecutor:

Prosecutors have 10 days to indict Lee, Samsung’s third-generation leader. After indictment, the court will have to make a decision within three months.

The Samsung Group said after Mr. Lee’s arrest “we will do our best to ensure that the truth is revealed in future court proceedings.”

Though, Samsung and Mr. Lee have denied to any claim in the case.

A Judge of the court said, “We acknowledge the cause and necessity of the arrest”

The same court rejected the request to arrest Samsung’s Chief Lee last month, but then prosecutors on Tuesday brought additional accusations against Mr. Lee, seeking his arrest on bribery and other charges.

Lee’s detention might not hamper the day-to-day operation of the firms, as they are run by professional managers. Experts also said it could impede strategic decision-making by South Korea’s biggest culminate.