Lee Jae-yong, known internationally as Jay Y. Lee, is 51 years old and holds the position of vice chairman of Samsung Group. In fact, he was also the highest ruler after his father suffered a heart attack in 2014.
At 10:30 this morning (June 8), Lee Jae-yong went to court in Seoul on charges of fraud and market manipulation. Lee wears a dark mask and vest, ignoring press questions before heading straight to the door of the court. It is expected that after attending the trial, Lee will continue to be held in detention pending a court decision this afternoon or tomorrow morning.
Vice Chairman Lee amid media siege at the trial this morning, June 8 (Image: Reuters)
Earlier, on June 4, the prosecutor accused Lee Jae-yong related to illegal transactions and stock manipulation to conduct the merger of two subsidiaries Samsung C&T and Cheil Industries in 2015. In addition He is said to contribute to the hype of Samsung Biologics Co Ltd – where Cheil Industries is a major shareholder.
Follow Reuters, before chairman Lee Kun-hee became ill, the power of his only son Lee Jae-yong was not strong enough to step up to the throne of the prince, due to only a small stake in Samsung subsidiaries. . Accordingly, control of the corporation may be in the hands of other shareholders.
In the meantime, the 2015 merger became a solid step that helped Lee climb to the top of his power, taking more control. However, this action has always been criticized as “stifling” the interests of small shareholders.
Samsung said the investigation of Lee Jae-yong harmed the management of the group in the middle of hard times.
On June 5, Samsung Group denied Lee Jae-yong’s manipulation of stocks, claiming that Lee dominated the right to merge the company was “completely unreasonable”. In a longer announcement at the weekend, Samsung said the allegations against the vice president would put pressure on the executive, amid the group experiencing a “crisis” due to the Covid pandemic. -19 and the US-China trade war.
Chang Sea-jin, a professor of business at the Korea Institute of Science and High Technology, said: “The reputation of Lee Jae-yong and Samsung will be severely affected if the vice president goes to jail again. In addition, people will be more and more skeptical about the CEO position as well as Lee’s inheritance rights within the group. ”
Lee Jae-yong received a prison sentence in 2017, then was pardoned but the case continued to investigate recently.
In 2017, Crown Prince Lee was sentenced to five years in prison for bribing former South Korean President Park Geun-hye, in order to gain support from the Park government for the merger of two subsidiaries. But serving a year, Lee was pardoned in February 2018.
In South Korea, economic power is concentrated almost exclusively on tycoons and their idle corporations, sparking a series of unrelenting controversies about inheritance. In particular, Samsung is currently the most powerful empire, only Samsung Electronics Co. – the brightest jewel in the corporate crown – has revenue equivalent to 12% of GDP in Korea.