Lee Jae-yong, the heir apparent of Samsung, has been formally arrested in South Korea as part of an investigation into the "Choi-gate" corruption scandal. The scandal led to the impeachment of South Korean president Park Geun-hye.
Lee is the vice chairman of Samsung Electronics but technically serves as the head of the technology conglomerate. He has been accused of bribing President Park's secret confidante in exchange for policy favors. According to The Guardian, Lee has paid nearly $40 million in bribes. Lee and the Samsung Group have denied the accusations.
The Samsung head was already held in a detention center after he appeared in court on Thursday. Judges were deliberating whether or not to issue an arrest warrant for Mr. Lee while he was being held. The 48-year old Lee had been questioned several times over his alleged role in the Choi-gate scandal that shook the entire nation. He narrowly avoided getting arrested last January after the court was unable to find enough evidence to convict him.
On Tuesday, prosecutors made another bid for Lee's arrest saying they had now found enough evidence in the recent weeks to indict him. The arrest of Lee is likely to send shockwaves throughout the company, which is an important part of South Korea's economy. Samsung is also home to the world's largest smartphone manufacturer, the Samsung Electronics.
The company is still reeling after it was forced to recall millions of Galaxy Note 7 units after the phones would overheat and explode while being charged. Reports are suggesting that the company will face further sanctions from international authorities if Lee is found guilty of corruption. His grandfather and father were both reported to have had some close brushes with the law but were never prosecuted. According to a report from the BBC, Samsung's shares lost between .5% and 2% last Friday.
Lee is the only son of Samsung chairman Lee Kun-hee and has been labeled as the conglomerate's heir apparent. He began working for the company in 1991 as the Vice President of Strategic Planning. He has an estimated net worth $7.9 billion and is the third wealthiest person in South Korea.
This article is copyrighted by Travelers Today, the travel news leader
