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South Korean Prosecutors Seek Arrest Warrant For Samsung Heir

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South Korean Prosecutors Seek Arrest Warrant For Samsung Heir

Prosecutors in South Korea have filed an arrest warrant against Jay Y. Lee, the anointed heir to the Samsung Group and Vice Chairman of Samsung Electronics Co Ltd. (OTC: SSNLF

What Happened

The arrest warrant request came Thursday as a part of an investigation into an alleged accounting fraud and a merger between Samsung C&T, a construction firm, and Chiel Industries Inc., an operator of theme parks, reported TechCrunch. 

Prosecutors want to arrest Lee and two other former Samsung executives in relation to the controversial merger. 

It is suspected by the investigating authorities that the value of Cheil Industries was inflated before it was merged with Samsung C&T, which is the group’s de facto holding company.

The inflated value allegedly benefited Lee, who was at the time the largest shareholder in Chiel Industries. 

Why It Matters

According to TechCrunch, the merger made Lee the largest shareholder in Samsung’s holding company and paved the way for his succession from an ailing father. 

Lee is also facing a trial over bribery allegations relating to the arrested former South Korean President Park Geun-hye. 

It is alleged Lee sought the president’s favor while attempting to succeed his father Lee Kun-hee.

He was questioned by prosecutors in May and has denied all bribery charges. 

Samsung Price Action

On Thursday, Samsung shares closed 0.18% higher at $44.80 in Seoul. 

Image: Wikimedia.

 

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