After night in cell, Samsung’s Lee faces questioning

Korean conglomerate’s billionaire chief faces charges including bribery, embezzlement, hiding assets overseas and perjury

February 18, 2017 11:32 pm | Updated 11:32 pm IST - SEOUL

Handcuffed and tied with white rope, the scion of one of the world’s biggest conglomerates, Samsung Group, was taken on Saturday for questioning by South Korean authorities after spending a night in a small detention cell.

Samsung Group chief Jay Y. Lee was arrested on Friday for his alleged role in a corruption scandal that has led to the impeachment of President Park Geun-hye.

The 48-year-old Mr. Lee, who has a net worth of $6.2 billion, heads the technology giant that is the world’s biggest manufacturer of smartphones, flat-screen televisions and memory chips.

Mr. Lee arrived at the special prosecutor’s office at about 2:20 pm local time clean-shaven and expressionless. He was wearing a dark suit, white shirt and no tie as he was escorted by officials from a justice ministry van.

The special prosecutor’s office accuses Mr. Lee of bribing a close friend of the president to gain government favours related to leadership succession at the conglomerate. It said on Friday it will indict him on charges including bribery, embezzlement, hiding assets overseas and perjury.

He spent the night at the Seoul Detention Centre on the outskirts of the capital in a small single cell with a toilet in the corner behind a partition.

Special prosecution spokesman Lee Kyu-chul said on Friday that officials were working to supplement inadequacies in their investigation into Mr. Lee, without elaborating.

While Mr. Lee’s detention is not expected to hamper day-to-day operations at Samsung firms, which are run by professional managers, experts said it could hinder strategic decision-making at South Korea’s biggest conglomerate, or chaebol.

Samsung is going through a restructuring to clear a succession path for Mr. Lee to assume control after his father was incapacitated by a heart attack in 2014.

Decisions that could be complicated by Mr. Lee’s arrest include deliberations over whether to reorganize the group under a holding company structure, as well as its plan to abandon its future strategy office, a central decision-making body that came in for criticism during the scandal.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.