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Sunday, 19 February 2017

Samsung chief Lee arrested as S. Korean corruption probe deepens

Samsung Group chief Jay Y. Lee wasarrested early on Friday over his alleged role in a corruption scandal rocking the highest levels of power in South Korea, dealing a fresh blow to the world's biggest maker of smartphones and memory chips.The 48-year-old Lee, scion of the country's richest family, was taken into custody at the Seoul Detention Centre after waiting there overnight for the decision. He was being held in asingle cell with a TV and desk, a jail official said. Mr. Lee is a suspect in the influence-peddling scandal that led parliament to impeach President Park Geun-hye in December, a decision that if upheld by the Constitutional Court would make her the country's first democratically elected leader forced from office. Shares in flagship Samsung Electronics Co Ltd opened down 1.2 per cent, while shares in Samsung C&T Corp, the de facto holding company of Samsung Group, opened down 3.2 percent compared with the wider market's drop of 0.45 percent. Prosecutors have up to 10 days to indict Mr. Lee, Samsung's third-generation leader, although they can seek an extension. After indictment, a court would be required to make a ruling within three months.

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