Samsung Exec Faces Imminent Arrest

(ATR) A South Korean court will decide on Jan. 18 the validity of an arrest warrant for Samsung Group head Jay Lee.

After facing 22 hours of questioning by investigators, prosecutors have sought an arrest warrant for Lee in connection with a growing influence peddling scandal plaguing the country’s executive. Last month, prosecutors set up a special court solely for the investigation of Samsung in the ongoing scandal.

"It is difficult to agree with the special prosecutor's decision, because Samsung did not make contributions in order to receive favors," a Samsung spokesperson said toAround the Rings"In particular, we find it hard to accept the special prosecutor's argument that Samsung has made improper requests related to the merger of Samsung affiliates or the leadership transition. We believe the court will make the appropriate judgment on this matter."

Investigators are questioning Lee to see if a merger between two Samsung Group entities was approved because of a donation made to Soon Sil Choi’s foundation. Choi is a confidant of President Geun Hye Park and is at the center of the scandal that threatens to topple the Park government.

Park was impeached last month by the South Korean legislature and now faces trial by a constitutional court. If she is removed from office new elections must take place within 60 days.

A warrant would allow Korean authorities to detain Jay Lee while continuing the investigation. It would serve as the next step before formal charges are filed against the Samsung Group head.

"We believe that there was an illegal request made by Samsung in facilitating the process of business succession," Kyu-chul Lee, a spokesman for the prosecutor’s office, told reporters in Korea today.

Lee has assumed control of the Samsung Group from his father Kun Hee Lee. The elder Lee, who is a member of the IOC, suffered a heart attack in 2014, which forced him to step down as Samsung chairman. He has been in Seoul recovering since the cardiac event, despite frequent rumors of his death.

Samsung has been a staple in the Olympic movement since it served as a local sponsor for the Seoul 1988 Olympics. A decade later, the electronics giant became a TOP Sponsor in the wireless communications equipment department. Samsung’s TOP sponsorship runs through the 2020 Olympic Games in Tokyo.

Different Samsung Group entities have also worked as a local sponsor for the upcoming PyeongChang 2018 Olympics. The organizing efforts of the Games have not escaped the influence peddling scandal with advertising deals for Games reportedly done for the purpose of funneling money to Choi’s family.

Despite the connections, both the IOC and PyeongChang 2018 say cooperation continues with the acting national government, and preparations have not been stalled.

Written by Aaron Bauer and Gerard Farek

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