NEWS

South Korea seeks arrest of Samsung heir on bribery charges

Kevin McCoy
USA TODAY
A file picture dated Dec. 6, 2016 shows Lee Jae-yong, vice chairman of Samsung, answering questions during a parliamentary hearing over the Choi Soon-sil corruption probe at the National Assembly in Seoul, South Korea.

South Korea's special prosecutor on Monday sought an arrest warrant for Samsung Electronics heir apparent Lee Jae-yong on bribery charges, linking the executive into the country's deepening political scandal and raising potential economic uncertainty for the tech giant.

The move came after investigators questioned the executive of the world's largest smartphone maker last week on suspicion he paid an estimated $36 million in bribes to organizations tied to Choi Soon-sil, a friend of recently impeached South Korean President Park Geun-hye and a key figure in the scandal, according to the Korea Times and other media reports.

The executive, who's known as Jay Y. Lee in the West, is also under suspicion of embezzlement and perjury, according to reports, which cited the arrest warrant application.

At least in the short term, the prosecutorial action could raise questions about the corporate leadership of Samsung, which separately has struggled to determine the problem responsible for causing the company's Galaxy Note 7 smartphones to burst into flames. The issue forced the company to issue a recall that's expected to cost billions of dollars.

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It is considered unusual for South Korean prosecutors to seek the arrest of an executive who symbolizes the future of South Korea’s most important family-controlled conglomerates because such leaders are usually considered vital for the national economy. Lee, 48, became the acting head of Samsung in 2014 after his father, Lee Kun-hee, suffered a debilitating heart attack.

However, Lee Kyu-chul, a spokesman for the special prosecutor's office, said that "while the country's economic conditions are important, upholding justice takes precedence."

Calling the decision "difficult to agree with," Samsung issued a formal statement saying the company "did not make contributions in order 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," the company said. "We believe the court will make the appropriate judgment on this matter."

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A Seoul court said is expected to review the prosecutors’ request on Wednesday. The request takes two to three days to review, according to a Seoul court official in charge of arrest warrants who declined to give his name because of office rules.

The investigation of the Samsung chief could also target Park. Her impeachment is under review by the Constitutional Court, which will decide whether to restore her power or force her from office.

The prosecutors’ spokesman said investigators had evidence proving that Park shared wealth with Choi and was an accomplice in the Samsung bribery case. They plan to summon Park and will then decide whether to name her as a suspect in the Samsung case, he said.

Contributing: Associated Press