Bound in ropes on his arms and hands, Samsung Electronics Co.’s de facto leader and heir apparent was led to the start of his corruption trial in Seoul, the
Wall Street Journal
reported.
Lee Jae-yong, the vice chairman of the family-owned electronics giant headquartered in South Korea, and four of his lieutenants face bribery, embezzlement, hiding assets abroad and concealing profit gained from criminal acts charges. Lee is also charged with perjury. He was arrested in February and has not sought bail.
The charges stem from a corruption scandal at the company that led to the ouster of South Korean President Park Geun-hye from office. Officials say Samsung made $37 million in payments to groups linked to Park’s friend Choi Soon-sil. The payments were allegedly in exchange for a favorable vote from Park to approve the merger of two Samsung affiliates that would free up cash for Lee to inherit his father’s business outright.
Lee’s father has been incapacitated since 2014 but remains chairman of the company. When he dies, the Lee family is expected to owe billions in estate taxes.
Korean media are calling the case “the trial of the century.” The court is expected to reach a decision in May, but lawyers can ask for an extended timeline and appeals could progress to the country’s Supreme Court.
The company continues to thrive despite the controversy, expecting a 48% increase in first-quarter operating profit from the same period a year earlier, according to a company statement, helped by booming sales of semiconductors and displays. Final numbers are due later this month. (Source:
Wall Street Journal
, April 9, 2017)
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