Samsung Group’s chairman, Jay Y. Lee has appeared before the court and is awaiting for the new ruling, that may put him back into jail after a year of spending in it already. The new appeal from prosecutors alleges the group’s leader to be involved in a scandal from 2015, where two big Samsung affiliates have merged and possibly gave Jay Y. Lee a greater share of the formed group.
It’s said that, in South Korea, the economic power is highly concentrated in the hands of family businesses or conglomerates like Samsung, and would mostly pass down to heirs. In this case, Jay Y. Lee, the leader of Samsung Group has it all. Samsung is so big that, it’s annual revenue solely contributes to about 12% of South Korea’s GDP. Thus, it’s fair to assume that even a tiny scam in this group could garner big chunks of returns.
Jay Y. Lee is now alleged by prosecutors that, he was involved in stock manipulation and accounting fraud of Samsung C&T and Cheil Industries in 2015, which eventually gave him more share of the merged corp. Further, he’s also accused of inflating the value of Samsung Biologics Co Ltd. If an arrest is made, Lee would be detained for 20 days and make a way for prosecutors to press more charges in investigations, which may further detain or jail him.
Well, ditching him may not be affecting the grand business too, as Samsung Group was handled by several deep knowledged managers in past without his presence. Thus, it’s cause no effect on day-to-day business and investors emotions.
Though Mr Lee wasn’t forwarded to answer the press, Samsung group has stepped in to deny the stock manipulation incident and calls it as beyond common sense for anyone thinking of Lee’s involvement in decision making. Via: Reuters