South Korean special prosecutors indicted Samsung ’s de facto chief Tuesday on bribery, embezzlement and other charges linked to a political scandal that has toppled President Park Geun-hye.
South Korean special prosecutors indicted Samsung ’s de facto chief Tuesday on bribery, embezzlement and other charges linked to a political scandal that has toppled President Park Geun-hye.
The indictment of Samsung Electronics Vice Chairman Lee Jae-yong is a huge hit for the largest and most successful of the big businesses that dominate the South Korean economy. It also signals the still roiling state of South Korea’s political and economic circles after weeks of massive demonstrations that led to Park’s impeachment.
The announcement of the indictment came after a three-month investigation by a special prosecution team that ended Tuesday after the country’s acting leader refused a request for an extension.
Shortly after the announcement, Samsung said several top executives also facing criminal charges will resign from their positions and leave Samsung.
It did not say anything about Lee’s status, implying that the Samsung heir will likely keep his position and board membership at Samsung Electronics while he is under arrest and stands trial.
Prosecutors say Lee gave bribes worth $36 million to Park and her confidante to help win government support for a smooth leadership transfer from Lee’s ailing father to Lee.
Lee also allegedly hid assets overseas, concealed proceeds from criminal activities and committed perjury. The 48-year-old billionaire was arrested Feb. 17. Samsung has denied wrongdoing.
Prosecutors also said they planned to indict four other Samsung executives on charges of offering bribes, embezzlement, hiding assets overseas and concealing proceeds from criminal activities.
The indictments mean that key figures at a powerful yet secretive Samsung office that wielded influence over dozens of Samsung affiliates face trial. Lee promised in December to disband the secretive office, called the Corporate Strategy Office, which allegedly orchestrated bribery schemes centered on Choi Soon-sil, Park’s confidante.
