South Korean authorities demand the arrest of vice-president of Samsung

By: Bohdan Chub | 16.01.2017, 12:12
South Korean authorities demand the arrest of vice-president of Samsung

The special commission of the South Korean Procuratorate issued a warrant for the arrest of Samsung Electronics Vice President Li Zhe Yong, who is the actual head of the Samsung Group after his father Lee Kun-hee's hospitalization in 2014. This case is connected with the corruption scandal surrounding the country's President Pak Kun He, who faces impeachment.

The essence of the charges

According to the investigation, in exchange for various concessions from the authorities with the participation of Li Zhe Yong, the South Korean giant transferred $ 36.3 million to companies and funds associated with President's friend Tsoi Sun Sil. In 2015, the state pension fund approved the merger of Cheil Industries Inc. and Samsung C & T Corp. At the same time, Samsung paid more than $ 18 million to a German company owned by Tsoi Sun Sil and her daughter, allegedly for consulting services.

It is assumed that under the pretext of promoting culture and sport, the president's friend forced the South Korean companies to make donations to non-governmental foundations and appropriated some of this money. Samsung listed in two such funds more than $ 17 million prosecutors consider this money as a bribe.

The guilty can be more

The investigation is being conducted against three other top managers of Samsung. Li Jae-yen himself denies all charges. Law enforcement authorities postponed the decision to issue an order for 24 hours because the scandal surrounding the corporation's management may affect the country's economy. For example, in October, the Central Bank of South Korea deteriorated its forecast for GDP growth by 0.1% only in 2017 due to the recall of Samsung Galaxy Note 7. What will be the consequences in the case of proof of the fault of the actual head of Samsung - it is difficult to say, but the authorities decided that the establishment of justice more important.

Source: Yonhap