TECH

Heir to the Samsung Group empire again threatened with prison

Lee Jae-yong, vice president of the empire of the Samsung Group, was again threatened with prison, despite a clear image in the country, thanks to his active participation in the campaign against the coronavirus pandemic.
South Korean prosecutors have requested an arrest warrant against Lee Jae Young in connection with an investigation into alleged fraud in the merger of two Samsung subsidiaries in 2015.
This step represents a new problem for Lee, who, if arrested, could return to prison after just over two years after being released from custody in February 2018. He then spent a year in custody until the bribery case was suspended in 2018. Now they will arrest you on suspicion of manipulating stock prices and violating audit rules. It is reported that the Seoul Central Court will consider the prosecution's request for the June 8 arrest.
Prosecutors opened a new case after a financial regulator announced a sharp increase in the value of the pharmaceutical company Samsung Biologics, which increased 4.5 trillion won ($3.7 billion) in 2015. This growth is supposed to have been achieved thanks to handling and inventory accounting.
Prosecutors allege that the fraud helped to increase the market value of its main owner, Cheil Industries, of which Lee Jae Young is a major shareholder. The merger of Cheil Industries with Samsung C&T, a de facto holding company, allowed Lee Jae Young to establish exclusive control over the Samsung Group conglomerate.
The vice president's lawyers announced their intention to conduct an external audit to assess the prosecution's validity.
Samsung belongs to so-called “chaebols”, which play an important role in South Korea's economy. “Chaebol” is a South Korean specific form of a financial-industrial group that includes formally independent companies and belongs to a particular family. These include LG, Hyundai and SK. They have supported government initiatives for decades, leading efforts to modernize the industry and have become world leaders in transportation, steel and technology and electronics. 

Seong Joon Cho 
Bloomberg