Arrest Warrant Sought for Samsung Heir Lee Jae-yong in South Korea

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Special prosecutors in South Korea are seeking a formal arrest warrant for Lee Jae-yong, who is in charge of Samsung.


The case seems to be linked to the scandal that has caused the impeachment of the President Park Geun-hye. The South Korean President is accused of allowing a close friend Choi Soon-sil have too much control over her and the government.

Samsung is accused of giving $3.1 million as a bribe to non-profit organizations controlled by Choi, possibly as a way to win approval for a merger between construction firm Samsung C&T and related company Cheil Industries.

Lee has a lot of power in Samsung


Lee is vice chairman of Samsung Electronics, but he is seen as the heir at the family-controlled giant. Lee was held at the prosecutor's office for more than 20 hours of questioning, but he was released without charge.

Despite Samsung's revenue being important to the state, prosecutors are insistent that "achieving justice is more important".

Samsung has been a key company in South Korea because it has a high level of production and exports. Samsung is an important company that is respected worldwide, it is famous mainly due to its advances in electronics.

If prosecuted and convicted, Lee could face a maximum five years in prison. But key South Korean businessmen have previously been given suspended terms for these offences including his dad, Lee.


Samsung faces other issues too


Last year, Samsung had a bad moment when it was forced to withdraw its flagship Note 7 smart phone from the market after many units spontaneously caught fire. An investigation about it announced that the batteries were at fault.


Despite the problems, Samsung appears to have weathered that storm, with revenues and profits revitalized by global demand for the silicon chips it produces.

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