April 27, 2024

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[THE INVESTOR]  Samsung Electronics' shares opened up 2.65 percent at 1,896,000 won (US$1,616.53) in early morning trading on Jan. 19 after a Seoul court rejected an arrest warrant plea for Vice Chairman Lee Jae-yong.

A special investigation team probing the corruption scandal involving President Park Geun-hye and her confidante Choi Soon-sil requested the warrant on Jan. 16 on bribery charges.

Lee is accused of having ordered the conglomerate’s top brass to provide financial support worth up to 43 billion won for Choi and her dubious businesses in exchange for political and business favors.

The president’s longtime crony Choi in return, forced the state-run National Pension Service, the then-largest stakeholder of Samsung C&T, to back the firm’s contentious merger with Cheil Industries in 2015.

Some shareholders, including US hedge fund Elliot Management, opposed the merger, citing the deal undermined the shareholder value of C&T due to an unfair stock swap ratio.

The stock price, which reached a record high of 1,940,000 won last week, immediately dropped below the 1,900,000-won mark upon news that the prosecutors sought to arrest Lee.

The Samsung shares closed up 1.46 percent at 1,874,000 won on Jan. 19.

By Kim Young-won (wone0102@heraldcorp.com)