Samsung's Lee Jae-yong as he is being accompanied by his security details. (Photo : YouTube/ARIRANG NEWS)
Just as when Samsung is picking up the pieces, another blow to the company has been inflicted with the apprehension of one of their top bosses - Lee Jae-yong (Jay Y. Lee). The business magnate's arrest was due to accusations of embezzlement, perjury, and bribery in exchange for favors.
An arrest warrant was issued by Seoul's Central District Court on Feb. 17 following a previous warrant that got rejected in January due to lack of evidence. In a statement obtained by The Register, a representative from the company pointed out that Samsung has not offered bribes of such in exchange of asking favors to President Park Geun-hye.
Moreover, authorities believe that Lee cashed in an amount of $37.6 million dollars to foundations that are helmed by confidants of now impeached President Park. The said amount was given in exchange for the South Korean government's support of Samsung C&T and Chiel Industries' partnership in 2015.
As of late, the prosecutors now have 10 days to arraign Lee. If such process would be done during that timeframe, the court will then be asked to make its initial ruling within three months, according to Reuters.
Meanwhile, credit rating organizations believe that Lee's detention will have no bearing on Samsung's current credit standing and added that such development in the company will hasten its refinement of its corporate transparency and governance. However, it is inevitable that some daily processes within the company will be bogged down now that Lee is cuffed.
In a couple of statements gathered by the publication, an employee at the company's chip-making department stressed out that most of the employees are upset that the authorities singled out Samsung. Nonetheless, another employee mentioned that it would be irrational for the company to go haywire for reasons that their top executive is detained.
Watch a clip of Lee's arrest here:
