There’s an allegation on Samsung CEO Jay Y.Lee that he is involved in bribing to Choi Soon-sil who is very close to President Park Geun-hye.
Samsung is one of the big giant in tech industry around the globe and the scandal will definitely effect the name and reputation of the company. Samsung Chief Jay Y.Lee is charged with stealing money and committing deception as mentioned in prosecution’s warrant. According to the warrant Jay Y.Lee paid the amount of $36.42 million in order to get a governmental approval of controversial mergers.
“The special prosecutors’ office, in making this decision to seek an arrest warrant, determined that while the country’s economic conditions are important, upholding justice takes precedence,” said Lee Kyu-chul, prosecutor’s office spokesman. However, the Samsung has not accepted the accusation.
The investigation is still under the process to confirm that is there any evidence which proves that Samsung supported the business and the foundation started by Choi Soon-sil which may be linked with the decision of National Pension Service’s 2015 decision to approve a controversial $8 billion merger of two Samsung Group affiliates.
After this scandal Park still remains the president of South Korea but without her powers. Until the final decision of Constitutional Court, after which the Court will forcefull eject her from her Office. If this happened then she would be the first woman to be removed forcefully from President’s post.
Moon Hyung-pyo the chairman of the NPS, last week the chairman was charged with abusing power and falsely testifying in court. Also Choi Soon-sil who is a close friend of the President is involved in the case by intimidating big giants, such as Samsung to donate a big amount of contributions to President’s different non-profit schemes.
Choi Soon-sil denied the allegations of using flase power and attempting fraud while she appeared in the Court on Monday, Jan 16. She denied her involvement from the merging of the two Samsung affiliates in 2015. The accused president also said that she dont know anything about the merger of 2015.
Because of the scandal Samsung Electronics is suffering a big loss in stock exchange, the rates went down by 2.3 percent