The Samsung boss arrest was a major blunder for the Korean tech giant, but this could be a start for good things to come for the country's future. Samsung heir Lee Jae-Yong's arrest signifies a big blow to Samsung Electronics and it made a massive impact on the country.
Lee was arrested for embezzlement and perjury, including a very controversial bribery allegation with 11th South Korean leader Park Geun-hye. If the Samsung heir carried on with his negotiations with the former Korean president, this could grant Mr. Lee some political influence.
The Samsung boss reportedly paid about $40 million to the former South Korean president's associate. According to FinancialTimes, the Samsung heirs' father, Lee Kun-Hee, was also convicted of financial crimes. However, the source also mentioned that both cases against his father were eventually suspended. The Samsung boss arrest should justify South Korea's judicial system, given that Mr. Lee isn't given any pardon. Otherwise, if Mr. Lee is given leeway, much like his father, then this would implicate the presence of corruption within the system.
Overall, the arrest should lead to new openings and better opportunities for the next South Korean leader. For the sake of the country, the Samsung boss arrest should indicate the end of corruption and political power play between the government and tech conglomerates.
As for Samsung Electronics itself, Lee's absence does not seem to gravely affect the company's financial standing. According to CNBC, the tech company's liquid resources are more than enough to cover this year's expenses and total debt.
While the tech corporation's global image might have been marred by the Samsung boss arrest incident, it still has its financial foundation intact. As a matter of fact, the tech giant reportedly still has an asset value of up to $75.4 billion.
Regardless of the damage that has been dealt with the tech conglomerate, the country still has the opportunity to improve its economy especially when a new South Korean leader is appointed.
