Samsung Group chief Jay Y. Lee was arrested early on Friday over his alleged role in a corruption scandal that led parliament to impeach South Korean President Park Geun-hye, dealing a fresh blow to the world's biggest maker of smartphones.
The 48-year-old Lee, vice chairman of Samsung Electronics Co Ltd, was taken into custody at the Seoul Detention Centre, where he had awaited the court's decision following a day-long closed-door hearing that ended on Thursday evening.
The judge's decision was announced at about 5:30 a.m. (2030 GMT) on Friday, more than 10 hours after Lee, the sprawling conglomerate's third-generation leader, had left the court.
The same court rejected a request from prosecutors last month to arrest Lee. On Tuesday, the special prosecutor's office had requested a warrant to arrest him and another executive, Samsung Electronics president Park Sang-jin, on bribery and other charges.
However, the court rejected the request to arrest Park, who also heads the Korea Equestrian Federation, saying it was not needed given his "position, the boundary of his authority and his actual role."
The prosecution said it had secured additional evidence and brought more charges against Lee in the latest warrant request.
"We acknowledge the cause and necessity of the arrest," a judge said in his ruling, citing the extra charges and evidence.
Samsung and Lee have denied wrongdoing in the case.
"We will do our best to ensure that the truth is revealed in future court proceedings," the Samsung Group said in a brief statement after Lee's arrest.
While Lee's detention is not expected to hamper day-to-day operation of Samsung Group companies, which are run by professional managers, experts have said it could affect strategic decision-making by the country's biggest conglomerate.
The Samsung Group [SAGR.UL], a key driver of Asia's fourth-largest economy, has been engaged in a restructuring process as it clears a succession path for Lee to assume control after his father, Lee Kun-hee, was incapacitated by a 2014 heart attack.
"It is not like Samsung's business will be grinding to a halt. There are many smart people at the company," former Samsung Electronics executive Kim Yong-serk said recently.
However, Lee's arrest would have an impact on longer-term investment decisions, said Kim, now a professor at Sungkyunkwan University.
"Samsung presidents are evaluated on an annual basis, so they cannot make bold bets about the future. They need a chairman when making long-term investment decisions," he said.
Samsung is also the world's biggest maker of memory chips and flat screen TVs.
ZEROING-IN
The arrest gives a boost to prosecutors who have zeroed-in on Samsung Group to build their case against President Park and her close friend Choi Soon-sil, who is in detention and faces charges of abuse of power and attempted fraud.
Both Park and Choi have denied wrongdoing.
The office has focused its investigations on Samsung's relationship with Park, 65, who was impeached by parliament in December and has been stripped of her powers while the Constitutional Court decides whether to uphold her impeachment.
Prosecutors accused Samsung of paying bribes totaling 43 billion won ($37.74 million) to organizations linked to Choi to secure the government's backing for a merger of two Samsung units.
That funding includes Samsung's sponsorship of the equestrian career of Choi's daughter, who is in detention in Denmark, having been on a South Korean wanted list.
If the decision is upheld by the Constitutional Court, she will become South Korea's first democratically elected leader to be forced from office early.
Park remains in office but stripped of her powers while the Constitutional Court decides whether to uphold her impeachment by parliament.
"This is a painful event for Vice Chairman Lee," said Kim Sang-jo, a shareholder activist and economics professor at Hansung University who was questioned by the special prosecutor as a witness in the probe.
"But this will be an important opportunity for Samsung Group to sever ties with the past,” he said, referring to links between the government and the country's conglomerates, also known as chaebol.
Reuters
Fri Feb 17 2017
The 48-year-old Lee, vice chairman of Samsung Electronics Co Ltd, was taken into custody at the Seoul Detention Centre. - REUTERS pic
Misi menamatkan kemarau Piala Thomas di Chengdu diteruskan
Menang besar atau balik, itu situasi menanti pasukan badminton lelaki negara yang berhasrat untuk mengukir nama mereka dalam sejarah.
Break the Siege Freedom: Sampai bila misi ini akan ditangguhkan?
Penangguhan sekali lagi Misi Break the Siege Freedom Flotilla to Gaza terus menimbulkan tanda tanya kepada delegasi terlibat, sampai bila ia akan ditangguhkan.
Sehingga ke saat, rakan setugas Syaff Shukri memaklumkan, belum ada sebarang keputusan daripada Freedom Flotilla Coalition (FFC) berhubung perkara ini.
#AWANI745
#IsraelCuak
Sehingga ke saat, rakan setugas Syaff Shukri memaklumkan, belum ada sebarang keputusan daripada Freedom Flotilla Coalition (FFC) berhubung perkara ini.
#AWANI745
#IsraelCuak
Citra MTDC - Pengukuhan struktur untuk bina ekosistem lebih dinamik
Perbadanan Pembangunan Teknologi Malaysia, MTDC meneruskan kesinambungan dalam memacu pembangunan teknologi negara, dengan melancarkan Citra MTDC, untuk mewujudkan ekosistem inovasi yang lebih dinamik.
#AWANI745
#AWANI745
348 ditahan atas pelbagai kesalahan dadah
Polis menahan 348 individu termasuk 11 wanita dalam Ops Hawk yang dijalankan di seluruh negeri ini selama tiga hari bemula Selasa.
PM Anwar pulangkan elaun Pengerusi Khazanah, tegaskan sekali lagi tidak terima gaji
Anwar berkata beliau memulangkan elaun sebagai pengerusi Khazanah Nasional Berhad yang diterimanya dan sekali lagi menegaskan tidak menerima gaji bagi jawatan Perdana Menteri.
Ringgit ditutup kukuh berbanding dolar AS
Pada 6 petang, ringgit meningkat kepada 4.7650/7710 berbanding dolar AS daripada 4.7745/7775 ketika ditutup pada Khamis.
[TERKINI] Elaun masuk akaun bank tapi saya tak mahu - PM
Datuk Seri Anwar Ibrahim memaklumkan, beliau memulangkan semula elaun diterimanya sebagai Pengerusi Khazanah Nasional Berhad.
Usia Persaraan: KWSP disaran sediakan pinjaman untuk akaun 1 penyimpang
KWSP disaran untuk lebih kreatif bagi membantu penyimpan capai jumlah ideal untuk zaman persaraan, iaitu sekitar RM240,000.
Penganalisis Ekonomi Dr Barjoyai Bardai mencadangkan KWSP pertimbang beri pinjaman untuk akaun 1, dengan syarat ia tidak boleh diganggu.
#AWANI745
Penganalisis Ekonomi Dr Barjoyai Bardai mencadangkan KWSP pertimbang beri pinjaman untuk akaun 1, dengan syarat ia tidak boleh diganggu.
#AWANI745
MoF tiada rekod surat kelulusan Najib
Mahkamah Tinggi Kuala Lumpur diberitahu, Kementerian Kewangan tidak mempunyai pengetahuan mengenai dua surat kelulusan yang ditandatangani oleh Datuk Seri Najib Tun Razak selaku Menteri Kewangan.
#AWANI745
#AWANI745
Kes saman Ahmad Zahid terhadap Muhyiddin selesai secara baik
Kes saman yang difailkan Timbalan Perdana Menteri Datuk Seri Ahmad Zahid Hamidi terhadap bekas Perdana Menteri Tan Sri Muhyiddin Yassin, selesai secara baik di Mahkamah Tinggi hari ini.
COVID-19: Over 100 individuals in Penang undergo test
Most of them were tested negative for the disease while others are still waiting for the results, Penang Chief Minister said.