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Samsung heir Lee Jae-yong arrested in South Korea | Samsung heir Lee Jae-yong arrested in South Korea |
(about 4 hours later) | |
Samsung's heir apparent Lee Jae-yong has been placed under arrest in South Korea, accused of bribery and other charges. | Samsung's heir apparent Lee Jae-yong has been placed under arrest in South Korea, accused of bribery and other charges. |
The case is linked to a scandal that led to the impeachment of President Park Geun-hye. | |
Samsung is accused of giving donations to non-profit foundations operated by Choi Soon-sil, a friend of Ms Park, in exchange for government favours. | Samsung is accused of giving donations to non-profit foundations operated by Choi Soon-sil, a friend of Ms Park, in exchange for government favours. |
Mr Lee and the Samsung Group deny any wrongdoing. | Mr Lee and the Samsung Group deny any wrongdoing. |
The acting Samsung chief was first questioned by prosecutors in January, but they decided then not to arrest him. | |
But he was questioned for a second time earlier this week. | But he was questioned for a second time earlier this week. |
On Friday, the court said it "acknowledged that it is necessary to arrest [Lee Jae-Yong] in light of a newly added criminal charge and new evidence." | On Friday, the court said it "acknowledged that it is necessary to arrest [Lee Jae-Yong] in light of a newly added criminal charge and new evidence." |
The prosecution will now investigate further, and has 20 days to file formal charges. The arrest does not reflect a court opinion on guilt or innocence but only means it considers the potential crime very serious or that it assumes a flight risk. | |
What's the accusation? | What's the accusation? |
Prosecutors accused Mr Lee of giving donations worth 41bn won ($36m;£29m) to organisations linked to Ms Park's close friend Ms Choi. They alleged this was done to win government support for a big restructuring of Samsung that would help a smooth leadership transition in favour of Mr Lee, who is standing in as chairman for his ill father, Lee Kun-hee. | Prosecutors accused Mr Lee of giving donations worth 41bn won ($36m;£29m) to organisations linked to Ms Park's close friend Ms Choi. They alleged this was done to win government support for a big restructuring of Samsung that would help a smooth leadership transition in favour of Mr Lee, who is standing in as chairman for his ill father, Lee Kun-hee. |
The controversial merger required support from the national pension fund - the allegation is that this support was granted in return for the donations. | The controversial merger required support from the national pension fund - the allegation is that this support was granted in return for the donations. |
In a December parliamentary hearing, Samsung admitted giving a total of 20.4bn won to two foundations, but denied seeking favours in return. | In a December parliamentary hearing, Samsung admitted giving a total of 20.4bn won to two foundations, but denied seeking favours in return. |
Mr Lee also confirmed the firm gave a horse and money to help the equestrian career of Ms Choi's daughter, Chung Yoo-ra, something he said he now regrets. | Mr Lee also confirmed the firm gave a horse and money to help the equestrian career of Ms Choi's daughter, Chung Yoo-ra, something he said he now regrets. |
What's the political scandal? | What's the political scandal? |
This centres around President Park's ties to Ms Choi and has brought allegations of cult activities, influence-peddling and leaks of classified information. | This centres around President Park's ties to Ms Choi and has brought allegations of cult activities, influence-peddling and leaks of classified information. |
Ms Choi is a long term family friend whose father had already had close ties with President Park's father who was president in the 1970s. | Ms Choi is a long term family friend whose father had already had close ties with President Park's father who was president in the 1970s. |
As well as soliciting donations, Ms Choi is accused of using their friendship to interfere in politics. | As well as soliciting donations, Ms Choi is accused of using their friendship to interfere in politics. |
She is now on trial charged with various offences, including abuse of authority, coercion and attempted fraud, and denies wrongdoing. | She is now on trial charged with various offences, including abuse of authority, coercion and attempted fraud, and denies wrongdoing. |
Parliament voted in December to impeach President Park. Her case is now being heard by the constitutional court. Meanwhile she has been stripped of her presidential powers. | Parliament voted in December to impeach President Park. Her case is now being heard by the constitutional court. Meanwhile she has been stripped of her presidential powers. |
A friendship too far in Seoul? | A friendship too far in Seoul? |
What does it mean for Samsung? | What does it mean for Samsung? |
Mr Lee is currently vice-chairman of Samsung Electronics. But since his father, Lee Kun-hee, suffered a heart attack in 2014, he is considered de facto boss of the entire Samsung Group conglomerate. | Mr Lee is currently vice-chairman of Samsung Electronics. But since his father, Lee Kun-hee, suffered a heart attack in 2014, he is considered de facto boss of the entire Samsung Group conglomerate. |
Regardless of the outcome, a trial is a big blow to the company. His arrest may not affect short term production or the running of the firm but there could be long term implications. | Regardless of the outcome, a trial is a big blow to the company. His arrest may not affect short term production or the running of the firm but there could be long term implications. |
Samsung is one of the biggest electronics companies in the world and for the head of a company that thrives on a premium brand image to be involved in a corruption scandal is a huge embarrassment. | Samsung is one of the biggest electronics companies in the world and for the head of a company that thrives on a premium brand image to be involved in a corruption scandal is a huge embarrassment. |
It says it will do its best "to ensure that the truth is revealed in future court proceedings", though denies wrongdoing. | It says it will do its best "to ensure that the truth is revealed in future court proceedings", though denies wrongdoing. |