South Korean prosecutors on Monday sought a warrant for the arrest of the Samsung Group ’s de facto leader — one of the nation’s wealthiest and most-powerful executives — in a bribery case related to last month’s impeachment of the country’s president.
Investigators allege that Lee Jae-yong, vice chairman of Samsung Electronics Co., improperly directed company funds to a confidant of the impeached president, Park Geun-hye — perhaps in an effort to solidify his dynastic control over the tech giant, which is South Korea’s largest company.
The prosecutors say that Lee, the grandson of the late Samsung founder, directed the funds to Park’s friend, Choi Soon-sil, to curry favor with the government. In return, the prosecutors allege, he wanted support for a controversial 2015 merger between two company affiliates.
Rhee So-eui, a company representative, said Samsung did not make contributions to receive favors.
“In particular, we find it hard to accept the special prosecutor’s argument that Samsung has made improper requests related to the merger of Samsung affiliates or the leadership transition,” Rhee said. “We believe the court will make the appropriate judgment on this matter. »
If the arrest warrant is issued and leads to an indictment, these would be the latest criminal charges in an unprecedented power-abuse scandal that has rocked South Korea’s political system, leading to historic street protests in recent months.
“This thing is metastasizing all out of control,” Robert Kelly, an associate professor at Pusan National University, said of the scandal. “Every day there’s some new revelation.”
South Korea’s national legislature last month voted to impeach Park, who is suspended from daily presidential duties and, for now, remains immune to criminal charges. A constitutional court is weighing whether to permanently remove Park, whose appointed prime minister is the acting head of state.
Park has apologized repeatedly for the scandal but denied acting outside the national interest. She has also refused to cooperate with the various investigations into her actions.
Yet the allegations against the Samsung chief, who is known as Jay Y. Lee in the West, stand out because of the firm’s local and global prominence — and as a sign that more business moguls tied to the scandal could face criminal scrutiny.
Cain said the allegations, if they lead to a conviction, could dislodge Lee as the company’s de facto leader. “That would be groundbreaking in South Korea, since it’s almost unheard of for a ruling family to be pushed out of corporate power.
