Samsung heir Lee Jae-Yong has been granted a special presidential pardon. South Korea wants the billionaire's help to revive the country's economy. Palki Sharma tells you more.

Gravitas: Samsung heir gets out of jail to "save economy"

Billionaire Lee Jae-yong, the heir and de facto leader of the Samsung group, was granted a presidential pardon Friday, on the occasion of next week's Liberation Day anniversary.

Lee was among 1,692 prisoners with terminal illnesses and those ending their terms to be pardoned by President Yoon Suk-yeol on Friday.

However, Lee’s reprieve raised the eyebrows of many as he was convicted of bribery and embezzlement in January last year.

His release is the latest example of South Korea's long tradition of freeing business leaders convicted of corruption on economic grounds.

Justice Minister Han Dong-hoon said that the 54-year-old was reinstated to give him a chance to "contribute to overcoming the economic crisis" of the country.

According to Forbes, Lee is the 278th-richest person in the world, with a net worth of $7.9 billion.

In August 2021, Lee was released on parole after serving 18 months in jail, just over half of his original sentence.

But Friday's pardon has lifted a post-prison employment restriction that had been set for five years, and it will allow him to fully return to work.

"Due to the global economic crisis, the dynamism and vitality of the national economy have deteriorated, and the economic slump is feared to be prolonged," the Justice Ministry said in a statement.

The Liberation Day anniversary marks Japan's 1945 World War II surrender, which liberated Korea from decades of colonial rule. The event is celebrated every year with the pardon of hundreds of prisoners.

What’s next for Lee?

Lee is the vice-chairman of Samsung Electronics, the world's biggest smartphone maker. The conglomerate's overall turnover is equivalent to about one-fifth of South Korea's gross domestic product.

The pardon will allow Lee to work without restrictions. According to South Korean law, if a person is convicted of embezzlement or breach of trust worth more than 500 million Korean won ($384,101), that person cannot work for a company related to the crime for five years even after the prison sentence ends.

But he is completely free of his legal troubles. He still faces a separate trial over accusations of accounting fraud regarding a merger of two Samsung firms in 2015.

Eleven executives from Samsung, including Lee, were indicted in 2020 on charges including illegal transactions, stock manipulation, and perjury. The&nbsp;case is still pending.

(With inputs from agencies)

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Billionaire Lee Jae-yong, the heir and de facto leader of the Samsung group, was granted a presidential pardon Friday, on the occasion of next week's Liberation Day anniversary.

Billionaire Lee Jae-yong, the heir and de facto leader of the Samsung group, was granted a presidential pardon Friday, on the occasion of next week's Liberation Day anniversary. Lee was among 1,692 prisoners with terminal illnesses and those ending their terms to be pardoned by President Yoon Suk-yeol on Friday. However, Lee’s reprieve raised the eyebrows of many as he was convicted of bribery and embezzlement in January last year. His release is the latest example of South Korea's long tradition of freeing business leaders convicted of corruption on economic grounds. Justice Minister Han Dong-hoon said that the 54-year-old was reinstated to give him a chance to "contribute to overcoming the economic crisis" of the country. According to Forbes, Lee is the 278th-richest person in the world, with a net worth of $7.9 billion. In August 2021, Lee was released on parole after serving 18 months in jail, just over half of his original sentence. But Friday's pardon has lifted a post-prison employment restriction that had been set for five years, and it will allow him to fully return to work. "Due to the global economic crisis, the dynamism and vitality of the national economy have deteriorated, and the economic slump is feared to be prolonged," the Justice Ministry said in a statement. The Liberation Day anniversary marks Japan's 1945 World War II surrender, which liberated Korea from decades of colonial rule. The event is celebrated every year with the pardon of hundreds of prisoners. What’s next for Lee? Lee is the vice-chairman of Samsung Electronics, the world's biggest smartphone maker. The conglomerate's overall turnover is equivalent to about one-fifth of South Korea's gross domestic product. The pardon will allow Lee to work without restrictions. According to South Korean law, if a person is convicted of embezzlement or breach of trust worth more than 500 million Korean won ($384,101), that person cannot work for a company related to the crime for five years even after the prison sentence ends. But he is completely free of his legal troubles. He still faces a separate trial over accusations of accounting fraud regarding a merger of two Samsung firms in 2015. Eleven executives from Samsung, including Lee, were indicted in 2020 on charges including illegal transactions, stock manipulation, and perjury. The case is still pending. (With inputs from agencies) WATCH WION LIVE HERE

Samsung boss Lee, convicted for corruption, given pardon to ‘revive’ South Korea’s economy

Lee Jae-yong, the de-facto chairman of South Korea's enormous Samsung company, was found guilty on Tuesday of unlawfully taking the anaesthetic medication propofol, the latest legal setback for the multibillionaire.

The Seoul Central District Court penalised Lee, the vice-chairman of the world's largest smartphone maker Samsung Electronics and the world's 238th richest person, 70 million won ($60,000), according to Yonhap news agency.

Because propofol is less likely to be abused than other prohibited medications, violators are often given fines rather than prison sentences.

It is important to remember that while the sedative is intended for individuals having surgery, it has been known to be taken recreationally in the past.&nbsp;

In recent years, the struggling businessman had taken the medication, which is widely used as anaesthetic, hundreds of times.

Under South Korean law, both persons who receive and those who administer a restricted substance can be penalised.

Lee was granted parole in August after serving 20 months in prison following his conviction on bribery and embezzlement charges.

Prosecutors said in the latest trial that the Samsung vice-chairman took propofol on many occasions between 2015 and 2020 under the premise of skin therapy.

His lawyer, on the other hand, claims that the businessman used the anaesthetic to alleviate psychological stress related to his father's hospitalisation and the continuing legal processes. 
 
(With inputs from agencies)

Lee Jae-yong, the de-facto chairman of South Korea's enormous Samsung company, was found guilty on Tuesday of unlawfully taking the anaesthetic medication propofol, the latest legal setback for the multibillionaire.

Lee Jae-yong, the de-facto chairman of South Korea's enormous Samsung company, was found guilty on Tuesday of unlawfully taking the anaesthetic medication propofol, the latest legal setback for the multibillionaire. The Seoul Central District Court penalised Lee, the vice-chairman of the world's largest smartphone maker Samsung Electronics and the world's 238th richest person, 70 million won ($60,000), according to Yonhap news agency. Because propofol is less likely to be abused than other prohibited medications, violators are often given fines rather than prison sentences. It is important to remember that while the sedative is intended for individuals having surgery, it has been known to be taken recreationally in the past. In recent years, the struggling businessman had taken the medication, which is widely used as anaesthetic, hundreds of times. Under South Korean law, both persons who receive and those who administer a restricted substance can be penalised. Lee was granted parole in August after serving 20 months in prison following his conviction on bribery and embezzlement charges. Prosecutors said in the latest trial that the Samsung vice-chairman took propofol on many occasions between 2015 and 2020 under the premise of skin therapy. His lawyer, on the other hand, claims that the businessman used the anaesthetic to alleviate psychological stress related to his father's hospitalisation and the continuing legal processes. (With inputs from agencies)

South Korea court fines Samsung chief Lee Jae-yong for unlawful sedative use

The jailed de facto leader of the giant Samsung group walked free on parole Friday, the latest instance of South Korea's long tradition of freeing business leaders imprisoned for corruption or tax evasion on economic grounds.

Lee Jae-yong,&nbsp;the 202nd richest person in the world according to Forbes, with a net worth of $11.4 billion,&nbsp;was serving a two-and-a-half year prison sentence for bribery, embezzlement and other offences in connection with the corruption scandal that brought down ex-South Korean president Park Geun-hye.

But calls for his early release from both politicians and business leaders grew in recent months over what they claimed was a possible leadership vacuum at the South's biggest conglomerate.

The justice ministry announced Monday he had been paroled,&nbsp;among around 800 early releases,&nbsp;citing concerns over the coronavirus pandemic's impact on the economy.

Lee, 53, bowed to reporters waiting outside a detention centre south of Seoul and told them: "I have caused too much concern to the people. I'm really sorry."

Wearing a black suit, he added: "I'm listening carefully to your worries, criticisms, concerns, and high expectations about me," before he was driven away in a black limousine.

Lee was first jailed for five years in 2017, after Park's ouster, then walked free the following year when an appeals court dismissed most of his bribery convictions and gave him a suspended sentence.

But the Supreme Court later ordered Lee to face a retrial, which convicted and jailed him again.

Nonetheless, Lee remains on trial over alleged stock manipulation that effectively eased his path to take control of the family conglomerate -- the same purpose for which he was convicted of bribing Park.

There is a long history of top South Korea tycoons chaebol figures being charged with bribery, embezzlement, tax evasion, or other offences.

But many of those convicted have subsequently had their sentences cut or suspended on appeal, with some -- including late Samsung chairman Lee Kun-hee, who was convicted twice -- receiving presidential pardons in recognition of their "contribution to the national economy".

"This is undeniably preferential treatment, especially given that a separate trial is still going on," Song Won-keun, an economics professor at Gyeongsang National University, told AFP.

Wealth a factor?&nbsp;

According to justice ministry data, only 0.3 percent of all convicts who were released on parole from 2011 to 2020 served less than 70 percent of their jail terms.

But a rule change came into effect this month cutting the proportion of their sentences prisoners must serve before being eligible for parole to 60 percent -- a mark Lee passed a few weeks ago.

The giant&nbsp;Samsung&nbsp;group is by&nbsp;far&nbsp;the largest of the family-controlled empires known as chaebols that dominate business in South Korea, the world's 12th largest&nbsp;economy.

Its flagship subsidiary Samsung Electronics is the world's biggest smartphone maker.

Chaebol families often have only a small ownership stake in their empires, but maintain control through complex webs of cross-shareholdings between units.

Lee promised last year to end the line of family succession at the firm, saying he would not pass down his role to his children as he bowed in apology for multiple controversies.

His imprisonment has been no barrier to the firm's performance -- it announced a surge of more than 70 percent in second-quarter profits last month,&nbsp;with coronavirus-driven working from home boosting demand for devices using its memory chips.

Regardless, leaders of the country's top four conglomerates -- SK Group, Hyundai Motor Group, LG Group and Samsung -- in June met with President Moon Jae-in to press him to pardon Lee.

Polls also showed an increasing number of South Koreans in favour of granting him parole, with backing from more than 66 percent of respondents in a recent Realmeter survey.

But Vladimir Tikhonov, a professor of Korean Studies at the University of Oslo, took a different view.&nbsp;

"Releasing him does not follow routine law-enforcement practice and suggests that his wealth could have been a factor," he told AFP.

The jailed de facto leader of the giant Samsung group walked free on parole Friday, the latest instance of South Korea's long tradition of freeing business leaders imprisoned for corruption or tax evasion on economic grounds.

The jailed de facto leader of the giant Samsung group walked free on parole Friday, the latest instance of South Korea's long tradition of freeing business leaders imprisoned for corruption or tax evasion on economic grounds. Lee Jae-yong, the 202nd richest person in the world according to Forbes, with a net worth of $11.4 billion, was serving a two-and-a-half year prison sentence for bribery, embezzlement and other offences in connection with the corruption scandal that brought down ex-South Korean president Park Geun-hye. But calls for his early release from both politicians and business leaders grew in recent months over what they claimed was a possible leadership vacuum at the South's biggest conglomerate. The justice ministry announced Monday he had been paroled, among around 800 early releases, citing concerns over the coronavirus pandemic's impact on the economy. Lee, 53, bowed to reporters waiting outside a detention centre south of Seoul and told them: "I have caused too much concern to the people. I'm really sorry." Wearing a black suit, he added: "I'm listening carefully to your worries, criticisms, concerns, and high expectations about me," before he was driven away in a black limousine. Lee was first jailed for five years in 2017, after Park's ouster, then walked free the following year when an appeals court dismissed most of his bribery convictions and gave him a suspended sentence. But the Supreme Court later ordered Lee to face a retrial, which convicted and jailed him again. Nonetheless, Lee remains on trial over alleged stock manipulation that effectively eased his path to take control of the family conglomerate -- the same purpose for which he was convicted of bribing Park. There is a long history of top South Korea tycoons chaebol figures being charged with bribery, embezzlement, tax evasion, or other offences. But many of those convicted have subsequently had their sentences cut or suspended on appeal, with some -- including late Samsung chairman Lee Kun-hee, who was convicted twice -- receiving presidential pardons in recognition of their "contribution to the national economy". "This is undeniably preferential treatment, especially given that a separate trial is still going on," Song Won-keun, an economics professor at Gyeongsang National University, told AFP. Wealth a factor? According to justice ministry data, only 0.3 percent of all convicts who were released on parole from 2011 to 2020 served less than 70 percent of their jail terms. But a rule change came into effect this month cutting the proportion of their sentences prisoners must serve before being eligible for parole to 60 percent -- a mark Lee passed a few weeks ago. The giant Samsung group is by far the largest of the family-controlled empires known as chaebols that dominate business in South Korea, the world's 12th largest economy. Its flagship subsidiary Samsung Electronics is the world's biggest smartphone maker. Chaebol families often have only a small ownership stake in their empires, but maintain control through complex webs of cross-shareholdings between units. Lee promised last year to end the line of family succession at the firm, saying he would not pass down his role to his children as he bowed in apology for multiple controversies. His imprisonment has been no barrier to the firm's performance -- it announced a surge of more than 70 percent in second-quarter profits last month, with coronavirus-driven working from home boosting demand for devices using its memory chips. Regardless, leaders of the country's top four conglomerates -- SK Group, Hyundai Motor Group, LG Group and Samsung -- in June met with President Moon Jae-in to press him to pardon Lee. Polls also showed an increasing number of South Koreans in favour of granting him parole, with backing from more than 66 percent of respondents in a recent Realmeter survey. But Vladimir Tikhonov, a professor of Korean Studies at the University of Oslo, took a different view. "Releasing him does not follow routine law-enforcement practice and suggests that his wealth could have been a factor," he told AFP.

Jailed Samsung chief Lee Jae-yong released on parole

Lee Jae-yong the de facto chief of South Korea's <a href="https://www.wionews.com/world/south-korea-holds-final-hearing-in-samsung-leader-jay-y-lees-graft-trial-353333">Samsung </a>has been jailed for two and a half years over corruption charges, Yonhap news agency reported.

Watch:

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/samsung-affiliates-shares-rise-after-lees-death-sparks-hopes-of-shake-up-337945/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

A South Korean court found Lee Jae-yong, 52, guilty of bribery and embezzlement. <a href="https://www.wionews.com/world/lee-kun-hee-who-made-south-koreas-samsung-a-global-powerhouse-dies-at-78-337830">Samsung's</a> top official was immediately taken into custody after the verdict by a court in Seoul, reports said.

The Seoul court said: "Lee actively provided bribes and implicitly asked the president to use her power to help his smooth succession," adding,"it is very unfortunate that Samsung, the country's top company and proud global innovator, is repeatedly involved in crimes whenever there is a change in political power."&nbsp;

Lee was convicted of bribing an associate of former President Park Geun-hye and jailed in 2017, however, the sentence was reduced and suspended after appeal.&nbsp;

The South Korean Supreme Court then sent the case back to the Seoul High Court which announced its verdict today. Prosecutors had asked the judge for a nine-year jail term.

The latest verdict can be appealed in the country's top court.

Samsung which is the world's biggest manufacturer of smartphones and memory chips had announced more than 25 per cent in fourth-quarter operating profit.&nbsp;

The company had said it expected operating profit of $8.23 billion for October to December, up from 7.16 trillion won a year earlier.&nbsp;

Lee Jae-yong the de facto chief of South Korea's Samsung has been jailed for two and a half years over corruption charges, Yonhap news agency reported. Watch: A South Korean court found Lee Jae-yong, 52, guilty of bribery and embezzlement.

Lee Jae-yong the de facto chief of South Korea's Samsung has been jailed for two and a half years over corruption charges, Yonhap news agency reported. Watch: A South Korean court found Lee Jae-yong, 52, guilty of bribery and embezzlement. Samsung's top official was immediately taken into custody after the verdict by a court in Seoul, reports said. The Seoul court said: "Lee actively provided bribes and implicitly asked the president to use her power to help his smooth succession," adding,"it is very unfortunate that Samsung, the country's top company and proud global innovator, is repeatedly involved in crimes whenever there is a change in political power." Lee was convicted of bribing an associate of former President Park Geun-hye and jailed in 2017, however, the sentence was reduced and suspended after appeal. The South Korean Supreme Court then sent the case back to the Seoul High Court which announced its verdict today. Prosecutors had asked the judge for a nine-year jail term. The latest verdict can be appealed in the country's top court. Samsung which is the world's biggest manufacturer of smartphones and memory chips had announced more than 25 per cent in fourth-quarter operating profit. The company had said it expected operating profit of $8.23 billion for October to December, up from 7.16 trillion won a year earlier.

Samsung heir jailed for 2.5 years over bribery

South Korean prosecutors indicted the heir to the Samsung empire Tuesday over a controversial merger of two business units seen as a key step towards his succession, in the latest legal blow to the sprawling conglomerate.

Lee Jae-yong, vice chairman of Samsung Electronics, committed stock manipulation, breach of trust and other offences when two other subsidiaries, Samsung C&amp;T and Cheil Industries, merged in 2015, the prosecutors said.&nbsp;

Ten other current and former top Samsung executives were also charged.

Lee and his subordinates had carried out "a systemic scheme to take control of the Samsung Group with the least cost", said the prosecution, by deploying "various unfair transactions" that damaged other shareholders' interests. &nbsp;

Lee is already separately being retried on charges of bribery, embezzlement and other offences in connection with the corruption scandal that brought down former South Korean President Park Geun-hye.

The businessman was not detained, but the charges are likely to prove a distraction as his firm seeks to navigate the effects of the coronavirus pandemic.

<a href="https://www.wionews.com/technology/apple-reportedly-paid-almost-1-billion-to-samsung-for-faltering-on-order-for-screens-313197">Also read:&nbsp;Apple reportedly paid almost $1 billion to Samsung for faltering on order for screens</a>

Samsung Electronics is the flagship subsidiary of the group, which was founded by Lee's grandfather and has grown to become by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the world's 12th-largest economy.

Its overall turnover is equivalent to a fifth of South Korea's gross domestic product and is crucial to the country's economic health.

The firm saw profits rise in April-July with data centres moving to stockpile its DRAM chips to meet surging demand for online activities as a result of global lockdowns.

But the South's economy shrank 3.2 per cent year-on-year in the same period, according to a revised estimate by the central Bank of Korea on Tuesday.

Lee's legal team rejected the charges, calling them "one-sided allegations" by the investigators and "totally untrue".

<a href="https://www.wionews.com/technology/south-korean-court-denies-arrest-warrant-request-for-samsung-heir-304387">Also read:&nbsp;South Korean court denies arrest warrant request for Samsung heir</a>

"Every process for the merger was carried out legally," they said, adding the indictment against Lee was "not only beyond comprehension, it's lamentable."

'Cloud of uncertainty'

Chaebol families often have only a small ownership stake in their empires, but maintain control through complex webs of cross-shareholdings between units.&nbsp;

Lee was the largest shareholder in Cheil Industries, and critics say Samsung sought to artificially lower the price of C&amp;T to give him a bigger stake in the merged entity -- a key part of the Samsung structure -- consolidating his grip on the conglomerate.

Lee's latest legal troubles add a layer of "uncertainty" to the company and could "burden the South's economy as a whole", said Kim Dae-jong, a business professor at Sejong University in Seoul.&nbsp;

"The fact that he will have to stand another trial creates a cloud of uncertainty and probably affects Samsung's long-term investment plans," he told AFP.

With the country feeling the economic pain from the outbreak, "the timing isn't good", he added.

Nonetheless Samsung Electronics' shares closed up 0.37 percent in Seoul.

Some chaebol leaders who have been convicted in the past have subsequently received presidential pardons in recognition of their economic roles.

South Korean President Moon Jae-in campaigned in part on a promise of reforming the chaebols and the prosecution's move came despite a civilian review panel recommending Lee should not be indicted, citing a lack of evidence.

Lee was jailed for five years in 2017 after being found guilty of bribery and other offences linked to former president Park, before being cleared of the most serious charges on appeal and released a year later. That case is currently being retried.

Lee apologised in May over the issues, pledging to ensure "there will be no more controversy over the succession" and that he would not allow his children to take over from him at the firm.&nbsp;

"Our technology and products are being hailed as first-class but the public gaze towards Samsung still remains harsh," he said, bowing to the cameras. "This is my fault. I apologise."

South Korean prosecutors indicted the heir to the Samsung empire Tuesday over a controversial merger of two business units seen as a key step towards his succession, in the latest legal blow to the sprawling conglomerate.

South Korean prosecutors indicted the heir to the Samsung empire Tuesday over a controversial merger of two business units seen as a key step towards his succession, in the latest legal blow to the sprawling conglomerate. Lee Jae-yong, vice chairman of Samsung Electronics, committed stock manipulation, breach of trust and other offences when two other subsidiaries, Samsung C&T and Cheil Industries, merged in 2015, the prosecutors said. Ten other current and former top Samsung executives were also charged. Lee and his subordinates had carried out "a systemic scheme to take control of the Samsung Group with the least cost", said the prosecution, by deploying "various unfair transactions" that damaged other shareholders' interests. Lee is already separately being retried on charges of bribery, embezzlement and other offences in connection with the corruption scandal that brought down former South Korean President Park Geun-hye. The businessman was not detained, but the charges are likely to prove a distraction as his firm seeks to navigate the effects of the coronavirus pandemic. Also read: Apple reportedly paid almost $1 billion to Samsung for faltering on order for screens Samsung Electronics is the flagship subsidiary of the group, which was founded by Lee's grandfather and has grown to become by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the world's 12th-largest economy. Its overall turnover is equivalent to a fifth of South Korea's gross domestic product and is crucial to the country's economic health. The firm saw profits rise in April-July with data centres moving to stockpile its DRAM chips to meet surging demand for online activities as a result of global lockdowns. But the South's economy shrank 3.2 per cent year-on-year in the same period, according to a revised estimate by the central Bank of Korea on Tuesday. Lee's legal team rejected the charges, calling them "one-sided allegations" by the investigators and "totally untrue". Also read: South Korean court denies arrest warrant request for Samsung heir "Every process for the merger was carried out legally," they said, adding the indictment against Lee was "not only beyond comprehension, it's lamentable." 'Cloud of uncertainty' Chaebol families often have only a small ownership stake in their empires, but maintain control through complex webs of cross-shareholdings between units. Lee was the largest shareholder in Cheil Industries, and critics say Samsung sought to artificially lower the price of C&T to give him a bigger stake in the merged entity -- a key part of the Samsung structure -- consolidating his grip on the conglomerate. Lee's latest legal troubles add a layer of "uncertainty" to the company and could "burden the South's economy as a whole", said Kim Dae-jong, a business professor at Sejong University in Seoul. "The fact that he will have to stand another trial creates a cloud of uncertainty and probably affects Samsung's long-term investment plans," he told AFP. With the country feeling the economic pain from the outbreak, "the timing isn't good", he added. Nonetheless Samsung Electronics' shares closed up 0.37 percent in Seoul. Some chaebol leaders who have been convicted in the past have subsequently received presidential pardons in recognition of their economic roles. South Korean President Moon Jae-in campaigned in part on a promise of reforming the chaebols and the prosecution's move came despite a civilian review panel recommending Lee should not be indicted, citing a lack of evidence. Lee was jailed for five years in 2017 after being found guilty of bribery and other offences linked to former president Park, before being cleared of the most serious charges on appeal and released a year later. That case is currently being retried. Lee apologised in May over the issues, pledging to ensure "there will be no more controversy over the succession" and that he would not allow his children to take over from him at the firm. "Our technology and products are being hailed as first-class but the public gaze towards Samsung still remains harsh," he said, bowing to the cameras. "This is my fault. I apologise."

Samsung heir charged with fraud over succession-linked deal

A South Korean court on Tuesday denied an arrest warrant request for Samsung Group heir Jay Y. Lee after prosecutors accused him of accounting fraud and stock manipulation.

The ruling provided temporary relief for the vice chairman of Samsung Electronics. But he may face further pressure from the case at a time when the world's top maker of smartphones and memory chips contends with the impact of the COVID-19 pandemic on demand.

Prosecutors on Thursday asked the court to issue an arrest warrant against Lee, culminating a probe into accounting fraud and a controversial 2015 merger of two Samsung affiliates that they said helped facilitate Lee's plan to assume greater control of the group.

After the hearing, he is expected to head to a detention centre to await the judge's decision, expected on Monday or early Tuesday.

Misconduct Allegations

Samsung on Friday denied the allegation of stock-manipulation against Lee, saying it was "beyond common sense" to claim Lee was involved in the decision-making.

In a further statement over the weekend, the group said the lengthy probe is weighing on management, which is in a “crisis” at a time when the coronavirus pandemic and US-China trade disputes are adding to the uncertainty.

The company declined to make Lee available for comment.

This won’t be an unfamiliar process for Lee, nor will it be the end of his legal troubles if the prosecutors’ request is denied.&nbsp;

He served in jail for about one year until February 2018 for his role in a bribery scandal in which he was accused of giving horses as gifts to win support from the government of former President Park Geun-Hye for the merger.

The merger increased his control of the group, and of its crown jewel, Samsung Electronics Co, South Korea's biggest company. His father, Lee Kun-hee, has been ailing for some time.

"If he is arrested, this will further hurt the reputation of Lee and Samsung. There will more questions about his legitimacy as the CEO and successor of the company," Chang Sea-jin, a business professor at Korea Advanced Institute of Science &amp; Technology.

"The public would think, 'Oh he may have done something wrong again."

A South Korean court on Tuesday denied an arrest warrant request for Samsung Group heir Jay Y. Lee after prosecutors accused him of accounting fraud and stock manipulation.

A South Korean court on Tuesday denied an arrest warrant request for Samsung Group heir Jay Y. Lee after prosecutors accused him of accounting fraud and stock manipulation. The ruling provided temporary relief for the vice chairman of Samsung Electronics. But he may face further pressure from the case at a time when the world's top maker of smartphones and memory chips contends with the impact of the COVID-19 pandemic on demand. Prosecutors on Thursday asked the court to issue an arrest warrant against Lee, culminating a probe into accounting fraud and a controversial 2015 merger of two Samsung affiliates that they said helped facilitate Lee's plan to assume greater control of the group. After the hearing, he is expected to head to a detention centre to await the judge's decision, expected on Monday or early Tuesday. Misconduct Allegations Samsung on Friday denied the allegation of stock-manipulation against Lee, saying it was "beyond common sense" to claim Lee was involved in the decision-making. In a further statement over the weekend, the group said the lengthy probe is weighing on management, which is in a “crisis” at a time when the coronavirus pandemic and US-China trade disputes are adding to the uncertainty. The company declined to make Lee available for comment. This won’t be an unfamiliar process for Lee, nor will it be the end of his legal troubles if the prosecutors’ request is denied. He served in jail for about one year until February 2018 for his role in a bribery scandal in which he was accused of giving horses as gifts to win support from the government of former President Park Geun-Hye for the merger. The merger increased his control of the group, and of its crown jewel, Samsung Electronics Co, South Korea's biggest company. His father, Lee Kun-hee, has been ailing for some time. "If he is arrested, this will further hurt the reputation of Lee and Samsung. There will more questions about his legitimacy as the CEO and successor of the company," Chang Sea-jin, a business professor at Korea Advanced Institute of Science & Technology. "The public would think, 'Oh he may have done something wrong again."

South Korean court denies arrest warrant request for Samsung heir

A South Korean court <a href="http://www.wionews.com/world/south-korean-prosecutors-seek-12-year-jail-term-for-samsung-heir-lee-27847">has freed Samsung heir Lee Jae-Yong</a>, 49, over bribery allegation after cutting his jail term to a suspending term and ordering his release.

South Korean prosecutors had sought a 12-year jail term for Lee Jae-Yong. A &nbsp;lower court had earlier sentenced him to five years in August as the scandal rocked the country.

Lee Jae-Yong was convicted of five charges including bribery, embezzlement and hiding assets overseas.

He was found guilty of providing $8.19 million in bribes to Choi Soon-sil, a long-time friend and confidante of former President Park Geun-hye.

The South Korean president &nbsp;Park Geun-Hye had resigned after the news became public.

Four former top Samsung executives -- Choi Gee-sung, former head of Samsung`s now-disbanded control tower Future Strategy Office; his former deputy Chang Choong-ki; Park Sang-jin, a former president of Samsung Electronics; and another former President Hwang Sung-soo -&nbsp;were also convicted of similar charges and sentenced to four years in prison or suspended terms.

Lee Jae-Yong was found guilty of providing $8.19 million in bribes to Choi Soon-sil, a long-time friend and confidante of former President Park Geun-hye

A South Korean court has freed Samsung heir Lee Jae-Yong, 49, over bribery allegation after cutting his jail term to a suspending term and ordering his release. South Korean prosecutors had sought a 12-year jail term for Lee Jae-Yong. A lower court had earlier sentenced him to five years in August as the scandal rocked the country. Lee Jae-Yong was convicted of five charges including bribery, embezzlement and hiding assets overseas. He was found guilty of providing $8.19 million in bribes to Choi Soon-sil, a long-time friend and confidante of former President Park Geun-hye. The South Korean president Park Geun-Hye had resigned after the news became public. Four former top Samsung executives -- Choi Gee-sung, former head of Samsung`s now-disbanded control tower Future Strategy Office; his former deputy Chang Choong-ki; Park Sang-jin, a former president of Samsung Electronics; and another former President Hwang Sung-soo - were also convicted of similar charges and sentenced to four years in prison or suspended terms.

South Korea court frees Samsung heir in bribery case

The heir to the Samsung business empire, which includes the world&#39;s biggest smartphone maker, was sentenced Friday to five years in prison for bribery and other offences in connection with the scandal that brought down South Korean president Park Geun-Hye.

Lee Jae-Yong&#39;s penalty could leave the giant firm rudderless for years and hamper its ability to make key investment decisions.

The vice-chairman of Samsung Electronics, 49, arrived at Seoul Central District Court on a justice ministry bus handcuffed, bound with white rope around his dark jacket, and carrying an envelope of documents.

Lee was found guilty of bribery, embezzlement, perjury and other charges centred on payments and promises by Samsung totalling 43.3 billion won (around $40 million) to Park&#39;s secret confidante Choi Soon-Sil.

The court found the money was in return for policy favours including government support for Lee&#39;s hereditary succession at the group, after his father was left bedridden by a heart attack in 2014.

The defence had denied the charges, saying Samsung was pressured by Park to make the donations under duress -- and that Lee was not aware of them and did not approve them. Four other top Samsung executives were also convicted and received sentences of up to four years.

Lee&#39;s lawyers said he would appeal.

The demonstrators who mounted giant candlelit protests against Park last year also targeted Lee and other chiefs of the chaebols, as the family-controlled conglomerates that dominate Asia&#39;s fourth-largest economy are known.

South Korea&#39;s GDP is still growing but social and economic frustrations have mounted over the benefits not being equally shared.

Around 800 riot police were deployed around the court to prevent possible clashes between rival sets of demonstrators, Yonhap said.

It was deluged with hundreds of applications for the 30 seats in courtroom 417 available to members of the public, which were allocated by lottery.

Park&#39;s own trial began in the same room in May, and it also saw Lee&#39;s father Lee Kun-Hee convicted of tax and other offences in 2008, receiving a suspended sentence.

The verdict could add impetus to new President Moon Jae-In&#39;s campaign pledges to reform the chaebols.

The firms have long had murky connections with political authorities in South Korea, and past trials of their leaders have often ended with light or suspended sentences, with courts citing their contributions to the economy.

The Lee clan directly owns about five percent of Samsung Electronics shares, but maintains its grip on the wider group through a byzantine web of cross-ownership stakes involving dozens of companies.&nbsp;

The court said Park was aware that Lee wanted state approval for a controversial merger of two Samsung units in 2015, seen as a key step to ensuring his accession.

The deal was opposed by shareholders who said it wilfully undervalued shares of one of the firms. But it eventually went through after the national pension fund -- a major Samsung shareholder -- approved it.

Analysts differ on the potential impact of the verdict and sentence on Samsung.

Lee has been Samsung&#39;s de facto leader since his father fell ill, but his lawyers and ex-members of the former elite Future Strategy Office (FSO), which dictated the vast group&#39;s overall direction and major business decisions, sought to portray him as naive and inexperienced.

&quot;Samsung will not be doomed without Jay Lee,&quot; said Geoffrey Cain, the author of a forthcoming book on the group. &quot;It&#39;s up to the specialists to make their own decisions.&quot;

Samsung appears to have been unaffected by Lee&#39;s absence so far -- he was detained in custody in February -- with flagship subsidiary Samsung Electronics making record profits on the back of strong demand for its memory chips.

But Chung Sun-Sup, the head of corporate analysis firm chaebul.com, said major chaebol decisions on large-scale acquisitions or investments &quot;are often endorsed by the patriarch of a ruling family&quot;, and with Lee in prison the firm &quot;may move more slowly than before&quot;.

Its shares have soared in recent months, but were down 1.05 percent on Friday afternoon after the verdict.

The ruling is seen as a strong indicator of the likely outcome in Park&#39;s trial, as some of the charges against the ousted head of state her are inextricably linked to the accusations Lee faced.&nbsp; 
&nbsp;

Jae-Yong was sentenced to five years in prison Friday for bribery, perjury and other crimes

The heir to the Samsung business empire, which includes the world's biggest smartphone maker, was sentenced Friday to five years in prison for bribery and other offences in connection with the scandal that brought down South Korean president Park Geun-Hye. Lee Jae-Yong's penalty could leave the giant firm rudderless for years and hamper its ability to make key investment decisions. The vice-chairman of Samsung Electronics, 49, arrived at Seoul Central District Court on a justice ministry bus handcuffed, bound with white rope around his dark jacket, and carrying an envelope of documents. Lee was found guilty of bribery, embezzlement, perjury and other charges centred on payments and promises by Samsung totalling 43.3 billion won (around $40 million) to Park's secret confidante Choi Soon-Sil. The court found the money was in return for policy favours including government support for Lee's hereditary succession at the group, after his father was left bedridden by a heart attack in 2014. The defence had denied the charges, saying Samsung was pressured by Park to make the donations under duress -- and that Lee was not aware of them and did not approve them. Four other top Samsung executives were also convicted and received sentences of up to four years. Lee's lawyers said he would appeal. The demonstrators who mounted giant candlelit protests against Park last year also targeted Lee and other chiefs of the chaebols, as the family-controlled conglomerates that dominate Asia's fourth-largest economy are known. South Korea's GDP is still growing but social and economic frustrations have mounted over the benefits not being equally shared. Around 800 riot police were deployed around the court to prevent possible clashes between rival sets of demonstrators, Yonhap said. It was deluged with hundreds of applications for the 30 seats in courtroom 417 available to members of the public, which were allocated by lottery. Park's own trial began in the same room in May, and it also saw Lee's father Lee Kun-Hee convicted of tax and other offences in 2008, receiving a suspended sentence. The verdict could add impetus to new President Moon Jae-In's campaign pledges to reform the chaebols. The firms have long had murky connections with political authorities in South Korea, and past trials of their leaders have often ended with light or suspended sentences, with courts citing their contributions to the economy. The Lee clan directly owns about five percent of Samsung Electronics shares, but maintains its grip on the wider group through a byzantine web of cross-ownership stakes involving dozens of companies. The court said Park was aware that Lee wanted state approval for a controversial merger of two Samsung units in 2015, seen as a key step to ensuring his accession. The deal was opposed by shareholders who said it wilfully undervalued shares of one of the firms. But it eventually went through after the national pension fund -- a major Samsung shareholder -- approved it. Analysts differ on the potential impact of the verdict and sentence on Samsung. Lee has been Samsung's de facto leader since his father fell ill, but his lawyers and ex-members of the former elite Future Strategy Office (FSO), which dictated the vast group's overall direction and major business decisions, sought to portray him as naive and inexperienced. "Samsung will not be doomed without Jay Lee," said Geoffrey Cain, the author of a forthcoming book on the group. "It's up to the specialists to make their own decisions." Samsung appears to have been unaffected by Lee's absence so far -- he was detained in custody in February -- with flagship subsidiary Samsung Electronics making record profits on the back of strong demand for its memory chips. But Chung Sun-Sup, the head of corporate analysis firm chaebul.com, said major chaebol decisions on large-scale acquisitions or investments "are often endorsed by the patriarch of a ruling family", and with Lee in prison the firm "may move more slowly than before". Its shares have soared in recent months, but were down 1.05 percent on Friday afternoon after the verdict. The ruling is seen as a strong indicator of the likely outcome in Park's trial, as some of the charges against the ousted head of state her are inextricably linked to the accusations Lee faced.

Samsung heir sentenced to 5 years in jail for bribery

A Seoul court on Thursday rejected an arrest warrant sought for Samsung heir Lee Jae-Yong, it said, part of a widening probe into a corruption scandal engulfing President Park Geun-Hye.

The Seoul Central District Court turned down a request sought by prosecutors on Monday for the warrant to arrest Lee on charges of bribery, embezzlement and perjury.

Investigators said Lee gave or promised some 43 billion won ($36.3 million) worth of bribes to Park&#39;s jailed confidante Choi Soon-Sil.

The payment was allegedly in return for the state pension fund&#39;s backing of a merger of two Samsung affiliates -- deemed crucial for Lee&#39;s hereditary succession of power at Samsung, the world&#39;s largest smartphone manufacturer and a key part of the South Korean economy.&nbsp;

But the prosecutors have so far failed to come up with solid evidence, the court said.

&quot;It is difficult to accept the reasons, need and justification&quot; to issue the warrant, it said in a statement released by the prosecutors, citing the lack of clear-cut evidence.

(AFP)

Investigators said Lee gave or promised some $36.3 million worth of bribes to President Park's jailed confidante Choi Soon-Sil

A Seoul court on Thursday rejected an arrest warrant sought for Samsung heir Lee Jae-Yong, it said, part of a widening probe into a corruption scandal engulfing President Park Geun-Hye. The Seoul Central District Court turned down a request sought by prosecutors on Monday for the warrant to arrest Lee on charges of bribery, embezzlement and perjury. Investigators said Lee gave or promised some 43 billion won ($36.3 million) worth of bribes to Park's jailed confidante Choi Soon-Sil. The payment was allegedly in return for the state pension fund's backing of a merger of two Samsung affiliates -- deemed crucial for Lee's hereditary succession of power at Samsung, the world's largest smartphone manufacturer and a key part of the South Korean economy. But the prosecutors have so far failed to come up with solid evidence, the court said. "It is difficult to accept the reasons, need and justification" to issue the warrant, it said in a statement released by the prosecutors, citing the lack of clear-cut evidence. (AFP)

S Korea: Court rejects arrest warrant for Samsung heir

Samsung heir Lee Jae-Yong was grilled by South Korean prosecutors on Thursday after becoming a criminal suspect in the corruption scandal engulfing impeached President Park Geun-Hye. 
 
Lee, chairman of Samsung Electronics and the son of the Samsung Group chairman Lee Kun-Hee, was to be questioned in connection to allegations of bribery, prosecutors said Wednesday.&nbsp; 
 
He is also accused of committing perjury during a parliamentary hearing last month into the affair, Yonhap news agency reported.&nbsp; 
 
&quot;I am sorry for causing concern among the people over this incident&quot;, Lee said as he arrived at the office of the special prosecutor investigating the case. 
 
Lee and his lawyer were greeted by scores of journalists as well as dozens of protesters waving banners and chanting &quot;arrest Lee immediately&quot; and calling him a &quot;co-culprit&quot; in the scandal.&nbsp; 
 
The likelihood of prosecutors seeking a court warrant to formally arrest Lee was &quot;high&quot;, an unidentified investigator was quoted by Yonhap as saying. 
 
The scandal centres on Park&#39;s secret confidante Choi Soon-Sil, who is accused of using her ties to Park to coerce top firms into &quot;donating&quot; tens of millions of dollars to two non-profit foundations which Choi then used as her personal ATMs.&nbsp; 
 
Samsung was the biggest contributor to the foundations. It is also accused of separately giving millions of euros to Choi to bankroll her daughter&#39;s equestrian training in Germany in a bid to curry favour. 
 
Prosecutors have for months questioned Lee and other senior Samsung officials. The officials reportedly argued that although they were coerced to offer money, they sought no favours in return and thus the payments were not a bribe. 
 
Lee was named a criminal suspect in the widening investigation on Wednesday.&nbsp; 
 
Prosecutors are investigating whether Samsung bribed Choi in order to win state approval for a controversial merger which it sought in 2015. 
 
The merger of two Samsung group units -- Cheil Industries and Samsung C&amp;T -- was seen as a crucial step towards ensuring a smooth third-generation power transfer to Lee Jae-Yong.&nbsp; 
 
It was criticised by many, who said it wilfully undervalued Samsung C&amp;T&#39;s stocks. But the National Pension Service -- a major Samsung shareholder -- voted in favour of the deal and it eventually went through.&nbsp;

(AFP) 
&nbsp;

Lee Jae-Yong was named a criminal suspect in the widening investigation on Wednesday

Samsung heir Lee Jae-Yong was grilled by South Korean prosecutors on Thursday after becoming a criminal suspect in the corruption scandal engulfing impeached President Park Geun-Hye. Lee, chairman of Samsung Electronics and the son of the Samsung Group chairman Lee Kun-Hee, was to be questioned in connection to allegations of bribery, prosecutors said Wednesday. He is also accused of committing perjury during a parliamentary hearing last month into the affair, Yonhap news agency reported. "I am sorry for causing concern among the people over this incident", Lee said as he arrived at the office of the special prosecutor investigating the case. Lee and his lawyer were greeted by scores of journalists as well as dozens of protesters waving banners and chanting "arrest Lee immediately" and calling him a "co-culprit" in the scandal. The likelihood of prosecutors seeking a court warrant to formally arrest Lee was "high", an unidentified investigator was quoted by Yonhap as saying. The scandal centres on Park's secret confidante Choi Soon-Sil, who is accused of using her ties to Park to coerce top firms into "donating" tens of millions of dollars to two non-profit foundations which Choi then used as her personal ATMs. Samsung was the biggest contributor to the foundations. It is also accused of separately giving millions of euros to Choi to bankroll her daughter's equestrian training in Germany in a bid to curry favour. Prosecutors have for months questioned Lee and other senior Samsung officials. The officials reportedly argued that although they were coerced to offer money, they sought no favours in return and thus the payments were not a bribe. Lee was named a criminal suspect in the widening investigation on Wednesday. Prosecutors are investigating whether Samsung bribed Choi in order to win state approval for a controversial merger which it sought in 2015. The merger of two Samsung group units -- Cheil Industries and Samsung C&T -- was seen as a crucial step towards ensuring a smooth third-generation power transfer to Lee Jae-Yong. It was criticised by many, who said it wilfully undervalued Samsung C&T's stocks. But the National Pension Service -- a major Samsung shareholder -- voted in favour of the deal and it eventually went through. (AFP)

South Korea: Samsung heir grilled in Park scandal

Samsung heir Lee Jae-Yong has become a criminal suspect in a widening probe into the corruption and influence-peddling scandal engulfing impeached South Korean President Park Geun-Hye, prosecutors said Wednesday.

Lee, vice chairman of Samsung Electronics and the son of the Samsung Group chairman Lee Kun-Hee, would be quizzed as a &quot;suspect&quot; in connection to bribery, prosecutors said.

&quot;We have decided to question Lee tomorrow morning... as a suspect,&quot; Lee Kyu-Chul, spokesman for the team of special prosecutors investigating the scandal, told reporters.&nbsp;

The affair centres on Park&#39;s secret confidante Choi Soon-Sil, who is accused of using her ties to Park to coerce top firms into &quot;donating&quot; tens of millions of dollars to two non-profit foundations which Choi then used as her personal ATMs.&nbsp;

Samsung was the biggest contributor to the foundations. It is also accused of separately giving millions of euros to Choi to bankroll her daughter`s equestrian training in Germany in a bid to curry favour.&nbsp;

Prosecutors have for months questioned Lee and other senior Samsung officials. The officials reportedly argued that although they were coerced to offer money, they sought no favours in return and thus the payments were not a bribe.

Spokesman Lee said prosecutors &quot;left open the possibility&quot; of formally arresting the Samsung scion later.&nbsp;

Prosecutors are investigating whether Samsung bribed Choi in order to win state approval for a controversial merger which it sought in 2015.&nbsp;

The merger of two Samsung group units -- Cheil Industries and Samsung C&amp;T -- was seen as a crucial step towards ensuring a smooth third-generation power transfer to Lee Jae-Yong.&nbsp;

It was criticised by many, who said it wilfully undervalued Samsung C&amp;T`s stocks. But the National Pension Service (NPS) -- a major Samsung shareholder -- voted in favour of the deal and it eventually went through.&nbsp;

Prosecutors have raided multiple Samsung offices as well as the NPS in connection with the scandal. The fund -- the world`s third largest pension fund -- is overseen by the welfare ministry.

A former welfare minister was arrested last month for allegedly pressuring NPS officials to vote in favour of the Samsung deal.&nbsp;

Park, who stands accused of colluding with Choi to extract money from the firms, was impeached by parliament last month but denies any criminal wrongdoing.&nbsp;

The Constitutional Court is currently reviewing the validity of her impeachment -- a process that may take up to six months. If the court approves the impeachment, a presidential election will be held in 60 days.

Choi, daughter of a shady religious figure who was close to Park for decades until his death in 1994, is on trial for charges including coercion and abuse of power.&nbsp;

The latest scandal shed light on unhealthy ties between the government and the powerful family-controlled conglomerates that have powered the country`s economy for decades.&nbsp;

There have been frequent scandals in which top managers at the conglomerates, known as chaebol, bribed officials to curry favour.

The founding families of the conglomerates have also become the targets of growing public mistrust. They are accused of running their global businesses with minimum scrutiny by regulators and investors.&nbsp;

The Samsung group -- the South`s largest business empire -- has a vast array of businesses including its flagship Samsung Electronics, the world`s largest maker of smartphones.&nbsp;

The group`s founding Lee family has stepped up efforts to accelerate the power transfer to Lee Jae-Yong after his father suffered a heart attack in 2014 that left him bedridden.

(PTI)

Lee Jae-Yong, vice chairman of Samsung Electronics, would be quizzed as a 'suspect' for allegedly giving millions of euros to Choi

Samsung heir Lee Jae-Yong has become a criminal suspect in a widening probe into the corruption and influence-peddling scandal engulfing impeached South Korean President Park Geun-Hye, prosecutors said Wednesday. Lee, vice chairman of Samsung Electronics and the son of the Samsung Group chairman Lee Kun-Hee, would be quizzed as a "suspect" in connection to bribery, prosecutors said. "We have decided to question Lee tomorrow morning... as a suspect," Lee Kyu-Chul, spokesman for the team of special prosecutors investigating the scandal, told reporters. The affair centres on Park's secret confidante Choi Soon-Sil, who is accused of using her ties to Park to coerce top firms into "donating" tens of millions of dollars to two non-profit foundations which Choi then used as her personal ATMs. Samsung was the biggest contributor to the foundations. It is also accused of separately giving millions of euros to Choi to bankroll her daughter`s equestrian training in Germany in a bid to curry favour. Prosecutors have for months questioned Lee and other senior Samsung officials. The officials reportedly argued that although they were coerced to offer money, they sought no favours in return and thus the payments were not a bribe. Spokesman Lee said prosecutors "left open the possibility" of formally arresting the Samsung scion later. Prosecutors are investigating whether Samsung bribed Choi in order to win state approval for a controversial merger which it sought in 2015. The merger of two Samsung group units -- Cheil Industries and Samsung C&T -- was seen as a crucial step towards ensuring a smooth third-generation power transfer to Lee Jae-Yong. It was criticised by many, who said it wilfully undervalued Samsung C&T`s stocks. But the National Pension Service (NPS) -- a major Samsung shareholder -- voted in favour of the deal and it eventually went through. Prosecutors have raided multiple Samsung offices as well as the NPS in connection with the scandal. The fund -- the world`s third largest pension fund -- is overseen by the welfare ministry. A former welfare minister was arrested last month for allegedly pressuring NPS officials to vote in favour of the Samsung deal. Park, who stands accused of colluding with Choi to extract money from the firms, was impeached by parliament last month but denies any criminal wrongdoing. The Constitutional Court is currently reviewing the validity of her impeachment -- a process that may take up to six months. If the court approves the impeachment, a presidential election will be held in 60 days. Choi, daughter of a shady religious figure who was close to Park for decades until his death in 1994, is on trial for charges including coercion and abuse of power. The latest scandal shed light on unhealthy ties between the government and the powerful family-controlled conglomerates that have powered the country`s economy for decades. There have been frequent scandals in which top managers at the conglomerates, known as chaebol, bribed officials to curry favour. The founding families of the conglomerates have also become the targets of growing public mistrust. They are accused of running their global businesses with minimum scrutiny by regulators and investors. The Samsung group -- the South`s largest business empire -- has a vast array of businesses including its flagship Samsung Electronics, the world`s largest maker of smartphones. The group`s founding Lee family has stepped up efforts to accelerate the power transfer to Lee Jae-Yong after his father suffered a heart attack in 2014 that left him bedridden. (PTI)

South Korea: Samsung heir to be grilled in graft case involving impeached president

Samsung Electronics Co. on Tuesday said it was considering splitting the company into two, a move seen as necessary for heir-apparent Lee Jae-Yong to take over the firm from his father.

Samsung has also come under pressure from foreign investors, including US hedgefund Elliott Management, to improve its corporate governance through the establishment of a holding company and to increase dividends for shareholders.

The move comes as the tech giant struggles to contain the fallout from a global recall of its Galaxy Note 7 smartphone prompted by exploding batteries.

Samsung said in a statement it would consider breaking the company into a holding firm and a producing and operating unit and would take at least six months to study the option.

Analysts said a split would give Samsung Electronics&#39; vice chairman Lee Jae-Yong a tighter grip on the company through a holding firm.

Elliott and other investors have urged Samsung to set up a holding company as a way to address its complicated layers of cross shareholdings with sister companies.

They also said the company should increase dividends for shareholders.

Samsung said it would increase per-share dividends by 36 per cent this year to 28,500 won.

(AFP)

Samsung is planning to break the company into a holding firm and a producing and operating unit and will take six months to study the option

Samsung Electronics Co. on Tuesday said it was considering splitting the company into two, a move seen as necessary for heir-apparent Lee Jae-Yong to take over the firm from his father. Samsung has also come under pressure from foreign investors, including US hedgefund Elliott Management, to improve its corporate governance through the establishment of a holding company and to increase dividends for shareholders. The move comes as the tech giant struggles to contain the fallout from a global recall of its Galaxy Note 7 smartphone prompted by exploding batteries. Samsung said in a statement it would consider breaking the company into a holding firm and a producing and operating unit and would take at least six months to study the option. Analysts said a split would give Samsung Electronics' vice chairman Lee Jae-Yong a tighter grip on the company through a holding firm. Elliott and other investors have urged Samsung to set up a holding company as a way to address its complicated layers of cross shareholdings with sister companies. They also said the company should increase dividends for shareholders. Samsung said it would increase per-share dividends by 36 per cent this year to 28,500 won. (AFP)

Samsung considers splitting into two

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