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The Korea Herald
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THE INVESTOR
March 29, 2024

Samsung

[HEIR ARREST] Businesses express regrets over Samsung heir’s arrest

  • PUBLISHED :February 17, 2017 - 15:42
  • UPDATED :February 17, 2017 - 15:42
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[THE INVESTOR] The nation’s business community was engulfed by shock after Samsung Electronics Vice Chairman Lee Jae-yong, the heir apparent, was arrested on Feb. 17 on bribery charges.

“Samsung Electronics is the nation’s biggest name that represents almost 30 percent of the total operating profit in the manufacturing sector. A leadership vacuum at Samsung will negatively affect business sentiment overall,” an official of the Korea Employers Federation. 




“Especially at a time when Chairman Lee Kun-hee has been hospitalized over the past three years, concerns are growing not just for Samsung’s business plans but also for their 25,000 employees and suppliers.”

The Korea International Trade Association also expressed regrets over Lee’s arrest, citing uncertainties around the world, including the nation’s sluggish exports and protectionist threats from the US and other trading partners.

“We hope the current political turmoil will be relieved as soon as possible for our companies to work harder for exports and economic recovery,” an official of the association said.

Lee’s arrest comes as a surprise after prosecutors’ first request to arrest him last month was rejected due to a lack of evidence. It is rare for prosecutors to apply for an arrest warrant for a second time unless significant new evidence has emerged.

“The rationale for Lee’s arrest is acknowledged considering new charges and additional evidence,” a Seoul court said in a text message sent to reporters after the decision.

The Samsung heir is suspected of having ordered his top aides to give a combined 43 billion won (US$36.30 million) to President Park Geun-hye’s crony Choi Soon-sil in return for business favors in the process of the group’s leadership transfer to a new generation.

The jailed Choi is accused of having influenced the state-run National Pension Service to support the 2015 merger of Samsung C&T and Cheil Industries, a crucial step for Lee to secure more control over Samsung Electronics and other key affiliates.

By Lee Ji-yoon (jylee@heraldcorp.com)

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