[UPDATES] Samsung's actual head waits for court decision in detention center

By Park Sae-jin Posted : January 18, 2017, 16:14 Updated : January 18, 2017, 16:14

[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]


The actual head of South Korea's top conglomerate, Samsung Group, moved to a detention center after attending a court hearing to review the legality of his arrest on charges of bribery, embezzlement and perjury over his role in a corruption scandal.

The hearing began after Jay Y. Lee, wearing a dark blue overcoat and a blue and purple patterned tie, was escorted by a team of investigators aboard a black van to a Seoul court.

A crowd of journalists crashed upon him, but the Samsung vice chairman had his mouth firmly closed with a grim look. Hundreds of camera flashes exploded as he walked quietly into the court with his eyes pointing to the ground, shrugging away a wave of questions.

After an interrogation for three hours and 40 minutes, Lee was sent to a detention center where he would be arrested if the court issues an arrest warrant. The result of the court's decision could come late Wednesday or early Thursday.

Lee is the first business leader to face possible imprisonment in an investigation into a corruption scandal engulfing President Park Geun-hye and her aides.

Special prosecutors insisted Lee played a leading role in Samsung's cash donations. "There is a need to place Vice Chairman Lee in detention for a smooth investigation into President Park," team spokesman Lee Kyu-chul told reporters.

Lee's attorneys argued no strings have been attached to Samsung's payment, describing their client as the victim of coercion and blackmailing. They claimed Lee's arrest would have a serious impact on South Korea's economy.

Samsung has called for leniency, citing the gravity of Lee's arrest. South Korean business leaders have seen their prison sentences shortened or suspended in consideration of the economic impact of their imprisonment.

According to CEO Score, a research body, Samsung was South Korea's biggest conglomerate affiliated with 59 subsidiaries. Their total assets were estimated at 350 trillion won. The Hyundai auto group was second with 209 trillion won.

Top officials of the family-run conglomerates, or "chaebol", which dominate the national economy, have made regular court appearances on various charges over the years. Some have received heavy jail terms, only for them to be pardoned or released on early parole in light of their "past contributions" and importance to future economic prosperity.

The scandal has fueled public sentiment against corporate donations, which have long been a controversial issue in South Korea due to concern about collusive ties between businessmen and politicians.

Lee is accused of providing and pledging a total of 43 billion won ($36.3 million) in bribes to Park's crony Choi Soon-sil, who is on trial for meddling in state affairs and pocketing money from family-run conglomerates. Lee denied his direct involvement but investigators accused him of directing Samsung officials to provide money to meet Park's request.

A parliamentary committee has questioned top conglomerate chiefs at a hearing that came on the heels of huge candle-lit protests calling for Park's resignation and arrest. Park was suspended after being impeached in parliament on December 9.

The 48-year-old only son of bedridden Samsung Group patriarch Lee Kun-hee faces charges of making a false testimony at a parliamentary hearing on December 6 that he was not personally involved in Samsung's cash donations.

Samsung allegedly struck a 22 billion won contract with a Germany-based company owned by Choi to support the equestrian training of her 21-year-old daughter, Chung Yoo-ra, who has been held in Denmark on charges of illegal stay.

Investigators said the contract came in return for the state-run pension fund's backing of a merger deal between Samsung subsidiaries in 2015. Lee is accused of providing bribes in an attempt to facilitate the succession of Samsung's leadership.
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