Samsung Chief Arrested on Bribery Charges in Corruption Scandal

Samsung chief Jay Y Lee has been arrested over his alleged role in an influence-peddling scandal that reaches to the highest levels of the South Korean government, it was reported on Friday.

Reuters said the 48-year-old vice-chairman and heir-apparent of Samsung was taken into custody at the Seoul Detention Center on Friday morning, after waiting there overnight for the decision.

r

Image via Reuters

South Korea's special prosecutor's office accuses Lee of bribing a close friend of President Park Geun-hye – who is currently facing impeachment over the scandal – in order to win favors related to leadership succession at Samsung Group. Lee now faces charges including bribery, embezzlement, hiding assets overseas, and perjury. Both Geun-hye and Lee have denied wrongdoing in the case.

Prosecutors have up to 10 days to indict Lee, but they can seek an extension. After indictment, a court must then make its first ruling within three months. Currently there's no word on whether lawyers representing Lee will contest the arrest or seek bail.

Shares in Samsung ended Friday down 0.42 percent, in line with a flat wider market. Ratings agencies say they don't expect any impact on the company's credit ratings, claiming Lee's arrest will accelerate improvements in corporate transparency and governance.

Meanwhile, Lee's arrest is not expected to hamper day-to-day operations at Samsung's divisions, which are run by professional managers. That said, the conglomerate is currently going through a restructuring to clear a succession path for Lee to assume control after his father suffered a heart attack in 2014, suggesting strategic decision-making on the issue could be affected.

Lee's detention comes as Samsung tries to resuscitate its Galaxy brand following last year's Note7 debacle, in which the handsets were prone to setting on fire whilst charging. The company is hoping that its Galaxy S8, expected to launch in April, will bring the brand back on course in a crucial year when Apple is expected to announce a "tenth anniversary" iPhone 8, for which Samsung will also provide 160 million OLED display panels.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tag: Samsung

Top Rated Comments

SeaFox Avatar
57 months ago
Bribery, embezzlement, hiding assets overseas, and perjury...

and here I thought the head of Samsung would be arrested for battery.

/rimshot
Score: 55 Votes (Like | Disagree)
Keniutek Avatar
57 months ago
You don't make billions by being nice and just. Every government and every big company is corrupted, no doubt in my mind.
Score: 34 Votes (Like | Disagree)
Evil Spoonman Avatar
57 months ago
Samsung is a fascinating company. They absolutely have fantastic engineering teams, and lofty technologies that are worthy of our appreciation. They haven't become this valuable and this well regarded for no reason. So anybody throwing Samsung in the dirt just because they are "the competition" and often behave unethically isn't being nuanced enough.

What seems to fall apart repeatedly is their management and product layer. Samsung products that don't need any extra design to be good are often really rather good. SSDs, displays, and so forth. The products that need to be designed to be more than just a collection of parts are consistently lacking. Phones, laptops, etc.

Samsung's management team, including product management, simply are prototypical of the worst style of management. Political, amoral, bureaucratic, committee-driven, lacking in vision or resolve. And here it bites them again. We shouldn't be surprised. But we should feel bad for the engineers who create amazing things at Samsung, but never get to share them properly.
Score: 34 Votes (Like | Disagree)
anubis1980 Avatar
57 months ago
Police need to check his pockets for note 7 phones . Perfect as incendiary devices allowing a quick escape
Score: 23 Votes (Like | Disagree)
meaning-matters Avatar
57 months ago
The world of politics is full of this, but they call it lobbying.
Score: 18 Votes (Like | Disagree)
HiRez Avatar
57 months ago
I'm actually kind of surprised this happened, considering the Lee family's hold on everything in the country, including the government. Then again, it's not the first time members of the family have been indicted, they just get pardoned later and I assume the same will happen here. For the wealthy elite, this is all just theater, they present the appearance of being in trouble to make it look like the government is keeping an eye on things, but they'll soon be back to their regular lives embezzling, giving and taking bribes, and so on.
Score: 14 Votes (Like | Disagree)

Top Stories

apple watch 6s 202009

Bloomberg: Apple Watch Series 7 to Feature Thinner Screen Bezels, Faster Processor, and Updated Ultra Wideband Tech

Monday June 14, 2021 3:41 am PDT by
This year's Apple Watch Series 7 is likely to have thinner display bezels and use a new lamination technique that brings the display closer to the front cover, according to Bloomberg's Mark Gurman. From the report: The Cupertino, California-based tech giant is planning to refresh the line this year -- with a model likely dubbed the Apple Watch Series 7 -- by adding a faster processor,...
m1 imac back

Some M1 iMac Models Shipping With Crooked Mountings

Monday June 14, 2021 12:50 pm PDT by
Some M1 iMacs appear to have a manufacturing defect that causes the display to be mounted on the stand in a way that's not perfectly aligned, leading to a crooked display. YouTuber iPhonedo over the weekend published a review of the M1 iMac, and he found that his machine appeared to be tilted on one side, a mounting disparity that was visibly noticeable and proved with a ruler. Another...
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
16 inch macbook pro m2 render

When Can We Expect the Redesigned MacBook Pros Now?

Wednesday June 16, 2021 7:11 am PDT by
With no sign of redesigned MacBook Pro models at this year's WWDC, when can customers expect the much-anticipated new models to launch? A number of reports, including investor notes from Morgan Stanley and Wedbush analysts, claimed that new MacBook Pro models would be coming during this year's WWDC. This did not happen, much to the disappointment of MacBook Pro fans, who have been...
apple new iphone case colors

Apple Releases New Sunflower, Cloud Blue and Electric Orange iPhone 12 Cases

Monday June 14, 2021 11:12 am PDT by
Apple today released silicone iPhone cases for the iPhone 12, 12 Pro, 12 Pro Max, and 12 mini in a series of new colors that include sunflower, cloud blue, and electric orange. Sunflower is a bright yellow shade, cloud blue is a soft, light blue, and electric orange is a bright orange that's darker than the kumquat color and more orange than pink citrus. The new cases are priced starting...
ipad iphone duo ios 12

Apple Releases iOS and iPadOS 12.5.4 Security Fix for Older iPhones and iPads

Monday June 14, 2021 10:15 am PDT by
Apple today released new iOS and iPadOS 12.5.4 updates, with the new software aimed at older devices that are unable to run the iOS 14 update that's available on modern devices. The iOS and iPadOS 12.5.4 updates can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software...
files app ipados 15

iPadOS 15: Files App Gains NTFS Support, Progress Indicator, and More

Tuesday June 15, 2021 3:41 am PDT by
Apple in iPadOS 15 has added the ability to access NTFS-formatted media from within the Files app. The additional support for the Windows-related format, first discovered by YouTuber Steven Fjordstrøm, is read-only, so like on macOS you can't modify files stored on NTFS devices, but you can at least copy any data on them for working on elsewhere on your iPad. The Files app has also gotten a...
maxresdefault

Apple CEO Tim Cook: Sideloading Apps Would 'Destroy the Security' of the iPhone

Wednesday June 16, 2021 10:49 am PDT by
Apple CEO Tim Cook this morning participated in a virtual interview at the VivaTech conference, which is described as Europe's biggest startup and tech event. Cook was interviewed by Guillaume Lacroix, CEO and founder of Brut, a media company that creates short-form video content. Much of the discussion centered on privacy, as it often does in interviews that Cook participates in. He...
maxresdefault

Demo: Check Out AirPlay 2 on a Mac in macOS Monterey

Tuesday June 15, 2021 11:57 am PDT by
With macOS Monterey, Apple has introduced expanded AirPlay 2 support, so you can AirPlay content from an iPhone, iPad, or even another Mac to your main Mac. We thought we'd do a quick demo of this handy new feature in our latest YouTube video. Subscribe to the MacRumors YouTube channel for more videos. With AirPlay to Mac, you can extend or mirror an Apple device's display to a Mac, and since ...
nomad airtag wallet card 2

Nomad's Latest Accessory Makes It Easier to Put an AirTag in Your Wallet

Monday June 14, 2021 12:00 pm PDT by
Nomad, known for its range of accessories designed for Apple devices, today announced the Card for AirTag, which is designed to make it easier for an AirTag to fit inside a wallet for tracking purposes. With Card for AirTag, an AirTag fits inside the middle of a card-shaped holder that's then meant to fit inside of a wallet. According to Nomad, the design offers a smooth, uniform shape that...