Samsung group chief Jay Y. Lee was arrested on Friday by South Korean authorities over his alleged role in one of the nation's biggest corruption scandals involving President Park Geun-hye's close friend Choi Soon-sil. The arrest of Samsung chief has dealt a fresh blow to the world's biggest smartphone maker.
Samsung Group leader Jay Y. Lee arrives for bribery suspicion questioning
Lee was taken into custody at the Seoul Detention Centre after waiting overnight for the decision. The 40-year-old business head is being held in a single cell with a TV and a desk, according to jail officials.
Lee is considered a suspect in the corruption scandal, which led to the impeachment of President Park Geun-hye in December. Park was impeached in the parliament where members of her own party voted against her in the National Assembly motion. There have been massive protests against Park recently with thousands taking to the streets demanding her ouster. Her relationship with close friend, Choi Soon-sil reportedly led to Choi's increase in influence and financial benefits.
Soon after the arrest of the Samsung chief, shares of flagship Samsung Electronics Co Ltd were down 1.2 percent, while shares of Samsung C&T Corp, the de facto holding company of Samsung Group, were down 3.2 percent compared to the wider market's drop of 0.45 percent, according to Reuters.
The prosecutors now have 10 days to indict Lee, although they can also seek an indiction of the scion of the wealthiest family in South Korea. After his indictment, a court will be required to make a ruling within three months.
A spokesperson for Samsung Group said that no decision has been made until now on whether their chief's arrest would be contested or if a bail would be sought for his release. The firm and Lee have denied any involvement in the corruption scandal.
"We will do our best to ensure that the truth is revealed in future court proceedings," the Samsung Group said in a brief statement after Lee's arrest.
A quest for Lee's arrest was rejected by a court last month, however, the prosecutor brought additional accusations against Lee on Tuesday seeking his arrest again on charges of bribery.
"We acknowledge the cause and necessity of the arrest," a judge said in his ruling, citing the extra charges and evidence.
