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
60 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
60 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
60 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
60 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
60 months ago
The world of politics is full of this, but they call it lobbying.
Score: 18 Votes (Like | Disagree)
HiRez Avatar
60 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

beats updater

Apple Officially Retires Beats Updater Utility in Favor of Over-the-Air Firmware Updates

Wednesday September 30, 2020 2:30 am PDT by
Apple has officially retired Beats Updater, the software utility that lets users update the firmware of their Beats Wireless headphones, earphones, and speakers. Beats Updater allows users to plug their Beats product directly into the USB port of their computer to check for firmware updates online, but with Apple's growing tendency to deliver over-the-air updates to wireless products via iOS ...
calculatorapp

iOS 11 Bug: Typing 1+2+3 Quickly in the Calculator App Won't Get You 6

Tuesday October 24, 2017 2:03 pm PDT by
A bug in the built-in Calculator app in iOS 11 is getting some major attention this week, despite the fact that it's been around since iOS 11 was in beta testing. At issue is a calculator animation that causes some symbols to be ignored when calculations are entered in rapid succession. You can try it for yourself: Type 1+2+3 and then the equals sign into the Calculator app quickly. Due to...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...
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...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...
m1 imac orange

New iMac Tidbits: Headphone Jack on Side, Ethernet Port on Power Adapter, Spatial Audio and WiFi 6 Support, No SD Card Slot

Wednesday April 21, 2021 6:38 am PDT by
Apple yesterday announced a completely redesigned 24-inch iMac with the M1 Apple silicon chip. The new iMac, the first major redesign of the Mac desktop computer since 2012, has several changes compared to the previous generation. In the aftermath of the event, a few new features and tidbits may have slipped under the radar, so we’ve compiled this list of some of the less-talked-about...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
affinity designer contour tool

Serif Updates Affinity Photo, Designer, and Publisher With New Tools and Functions

Thursday February 4, 2021 1:58 am PST by
Serif today announced across-the-board updates for its popular suite of Affinity creative apps, including Affinity Photo, Affinity Designer, and the Apple award-winning Affinity Publisher for Mac, all of which were among the first professional creative suites to be optimized for Apple's new M1 chip. "After another year which saw record numbers of people switching to Affinity, it's exciting to...
iPhone 13 Dummy Thumbnail 2

Full iPhone 13 Feature Breakdown: Everything Rumors Say We Can Expect

Tuesday August 31, 2021 7:50 am PDT by
With the launch of Apple's iPhone 13 lineup believed to be just a few weeks away, we have compiled all of the coherent rumors from our coverage over the past year to build a full picture of the features and upgrades coming to the company's new smartphones. For clarity, only explicit improvements, upgrades, and new features compared to the iPhone 12 lineup are listed. It is worth noting that...
qualcomm snapdragon x60 5g

iPhone 13 Lineup Expected to Use Qualcomm's Snapdragon X60 Modem With Several 5G Improvements

Wednesday February 24, 2021 8:10 am PST by
Apple's next-generation iPhone 13 lineup will use Qualcomm's Snapdragon X60 5G modem, with Samsung to handle manufacturing of the chip, according to DigiTimes. Built on a 5nm process, the X60 packs higher power efficiency into a smaller footprint compared to the 7nm-based Snapdragon X55 modem used in iPhone 12 models, which could contribute to longer battery life. With the X60 modem, iPhone...