On Jan. 16th, Samsung Electronics Company Vice Chairman Lee Jae-yong was legally accused of bribing officials to gain the favor of the South Korean government.
Prosecutors are seeking out a warrant for Jae-yong’s arrest, believing he directed company funds to a confidant of South Korea’s president Park Geun-hye. The act in question is believed to be related to the ultimate suspension of Geun-hye’s position after numerous scandals related to abuse of power.
Although officials say Jae-yong reallocated the funds to gain support for the 2015 merger between two company affiliates, Rhee So-eui, a company representative, denies the claims.
“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,” he said. “We believe the court will make the appropriate judgement on this matter.”
If the warrant is approved and leads to the arrest of Jae-yong, it will only be the latest in charges set against South Korean government officials for recorded abuse of power. Prosecutors say this case is in relation to last month’s suspension of Geun-hye, who has yet to receive criminal charges. Courts are currently debating whether or not her suspension will to an official impeachment. While she remains inactive, South Korea’s prime minister, Hwang Kyo-ahn, is assuming her responsibilities.
Interestingly, similar cases of charging South Korean company executives is a common affair in the country.
Jae-yong is the grandson of Samsung’s founder, and according to Seoul-based journalist Geoffrey Cain, accusations against family-led enterprises in South Korea has become a rite of passage. What separates this situation from past cases is that if Jae-yong is convicted, it will be one of the country’s only occasions of a ‘ruling family to be pushed out of corporate power.’
Prior to this case, Lee Kun-hee, Jae-yong’s father, was forced to resign in 2008 after facing charges for starting a slush fund that promoted Samsung’s interests.
