Samsung's legal nightmare is intensifying.
Prosecutors on Tuesday said they will indict Lee Jae-yong, the de facto chief of the giant South Korean conglomerate, on bribery and other charges. His case is part of the huge political corruption scandal that has shaken South Korea.
Lee, 48, was arrested earlier this month and has been in custody since then. His indictment, along with that of four other Samsung executives, is expected to take place later Tuesday, the prosecutors' office said.
It raises the prospect of a trial of the heir apparent to South Korea's biggest family-run business empire.
Prosecutors allege that Lee, who's also known as Jay Y. Lee, pledged tens of millions of dollars to win favor with President Park Geun-hye and secure government support for a controversial merger that helped tighten his grip on Samsung.
They are accusing him of bribery, perjury, concealing criminal profits, embezzlement and hiding assets overseas.
Samsung and Lee have denied the allegations.
Lee is the heir to Samsung's sprawling business empire. His father, the chairman of the group, suffered a heart attack in 2014 and has remained in ill health. Lee is also vice chairman of Samsung Electronics(SSNLF), the crown jewel among the family's array of affiliated companies.
The case against Lee and the other Samsung executives has become a key element in a far-reaching scandal that has driven hundreds of thousands of South Korean protesters to the streets and prompted lawmakers to vote to impeach the president.
Samsung's links to the corruption investigation have done further damage to the company's image after the humiliating fiasco over its fire-prone Galaxy Note 7 smartphone last year.
Lee is far from the first South Korean business leader to face accusations of corruption. His father, Samsung Group Chairman Lee Kun-hee, was convicted twice -- and pardoned twice.
Analysts say that Samsung Electronics has a strong group of senior managers who can manage the company on a day-to-day basis but that a protracted absence of Lee could affect big strategic decision making.
Prosecutors on Tuesday said they will indict Lee Jae-yong, the de facto chief of the giant South Korean conglomerate, on bribery and other charges. His case is part of the huge political corruption scandal that has shaken South Korea.
Lee, 48, was arrested earlier this month and has been in custody since then. His indictment, along with that of four other Samsung executives, is expected to take place later Tuesday, the prosecutors' office said.
It raises the prospect of a trial of the heir apparent to South Korea's biggest family-run business empire.
Prosecutors allege that Lee, who's also known as Jay Y. Lee, pledged tens of millions of dollars to win favor with President Park Geun-hye and secure government support for a controversial merger that helped tighten his grip on Samsung.
They are accusing him of bribery, perjury, concealing criminal profits, embezzlement and hiding assets overseas.
Samsung and Lee have denied the allegations.
Lee is the heir to Samsung's sprawling business empire. His father, the chairman of the group, suffered a heart attack in 2014 and has remained in ill health. Lee is also vice chairman of Samsung Electronics(SSNLF), the crown jewel among the family's array of affiliated companies.
The case against Lee and the other Samsung executives has become a key element in a far-reaching scandal that has driven hundreds of thousands of South Korean protesters to the streets and prompted lawmakers to vote to impeach the president.
Samsung's links to the corruption investigation have done further damage to the company's image after the humiliating fiasco over its fire-prone Galaxy Note 7 smartphone last year.
Lee is far from the first South Korean business leader to face accusations of corruption. His father, Samsung Group Chairman Lee Kun-hee, was convicted twice -- and pardoned twice.
Analysts say that Samsung Electronics has a strong group of senior managers who can manage the company on a day-to-day basis but that a protracted absence of Lee could affect big strategic decision making.
source:cnn.com
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