Samsung chief on bribery charge

South Korean prosecutors have charged Samsung chief Jae-yong Lee with bribery and embezzlement as the top conglomerate announced the dismantling of its corporate strategy office, the latest developments in a graft scandal that has rocked the country.

Samsung chief on bribery charge

Mr Lee was arrested on February 17 over his alleged role in the corruption scandal involving impeached South Korean president Park Geun-hye, dealing a fresh blow to the standard-bearer for Asia’s fourth-largest economy.

The special prosecutor’s office said yesterday, the last day of its investigation, that it had charged Mr Lee, third-generation leader of the tech giant ‘chaebol’ (a family-owned conglomerate), and four other executives with bribery and embezzlement.

The charges against him included pledging bribes to a company and organisations tied to Ms Park’s confidant, Choi Soon-sil, the woman at the centre of the scandal, to cement his control of the smartphones-to-biopharmaceuticals business empire.

“We apologise for the social controversy and distress we have caused,” Samsung executive vice president Lee June said.

The charges came ahead of a Constitutional Court ruling on whether to uphold parliament’s December impeachment of Ms Park. That impeachment was triggered by accusations she colluded with Ms Choi to press big businesses, including Samsung, to donate to two foundations set up to back Ms Park’s policy initiatives. The court’s ruling is expected this month.

Should it uphold the impeachment, Ms Park would become the country’s first democratically elected president to be thrown out of office. The special prosecutors did not disclose specifics of the charges against Mr Lee or other Samsung executives. Ms Park, Ms Choi, and Mr Lee have all denied wrongdoing. Based on the main charges levied against Mr Lee, he could face up to 20 years in prison if convicted.

In December, Mr Lee promised to shut Samsung’s corporate strategy office, a key nerve centre responsible for major initiatives such as investment in new businesses, amid accusations by politicians it was a key organ for illicit lobbying efforts. Samsung said chief executives and boards of its various affiliates would set their own course going forward.


More in this section

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

IE logo


The Business Hub

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Some of the best bits from direct to your inbox every Monday.

Sign up