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Samsung’s Jay Lee arrested: 10 things you didn’t know1 of 11

  • Samsung's Jay Y Lee was arrested today

    Samsung's Jay Y Lee was arrested today

    Samsung’s scion Jay Y. Lee was arrested on Thursday as part of an investigation into a corruption and influence-mongering scandal that reached all the way up to the South Korean President, Park Geun-Hye. Here are 10 things you didn’t know about the third-generation leader, Lee Jae-Yong.

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  • The Crown Prince of Samsung

    The Crown Prince of Samsung

    Jay Y. Lee, often referred to as the “Crown Prince of Samsung” by the Korean media is the vice chairman of Samsung conglomerate. After his father, chairman Lee Kun-Hee suffered a cardiac arrest in 2014, Lee was considered the de facto head of the company and is widely seen as the successor to his father, taking over the reins of the company.

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  • Lee accused of paying nearly $40 million in bribes

    Lee accused of paying nearly $40 million in bribes

    In the ongoing probe, the South Korean court has accused Lee of paying nearly $40 million in bribes to one of the president’s confidants in order to secure favourable deals. It has been alleged that Lee paid donations to several non-profit foundations operated by Choi Soon-Sil, a friend of the President’s to win the government’s support for the big restructuring that took place inside Samsung, merging Samsung C&T with Cheil Industries. The merger was a crucial step for Lee to take over the reins officially from his ill father. The merger itself was deemed controversial as many investors alleged that the merger wilfully undervalued Samsung C&T’s shares to go ahead with the deal.

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  • Jay Y. Lee is the grandson of Lee Byung-Chul

    Jay Y. Lee  is the grandson of Lee Byung-Chul

    Jay Y. Lee marks the third generation of Lee’s who've led Samsung. He is the grandson of Lee Byung-Chul, the founder of Samsung Group and one of the most successful businessmen in the history of Korea. Lee’s father Lee Kun-Hee was the Chairman of Samsung who was also involved in a slush funds scandal. Together, the Lee family rank among Forbes richest people in the world. In 2014, Both father and son were named the 35th most powerful person in the world, and the most powerful Koreans by Forbes Magazine’s List of World’s Most Powerful People.

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  • He studied East Asian history and Business Administration

    He studied East Asian history and Business Administration

    Lee was born in Washington D.C. and got his degree in East Asian history from Seoul National University. He did his master’s in Business Administration from Keio University before embarking on a doctorate in Business Administration from Harvard for five years, but was unable to receive a degree for it.

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  • He joined Samsung as Chief Customer Officer

    He joined Samsung as Chief Customer Officer

    48-year old Lee has spent almost his whole life at Samsung, joining the company in 1991 when he served as the Vice President of Strategic Planning and then as “Chief Customer Officer”, which was a position created exclusively for him in the company. Since his father’s return as CEO of Samsung Electronics in 2012 (His father Kun-Lee had to step down following a tax-evasion allegation), Lee had been the Vice President for Samsung.

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  • He is allegedly involved in bribing, embezzlement and perjury

    He is allegedly involved in bribing, embezzlement and perjury

    Lee was questioned in January this year by South Korean officials in lieu of a bribery and influence-peddling scandal that centred around the President of South Korea, Park Geun-hye, who stands to be impeached by the parliament. Lee was taken into custody on January 12, 2017 by South Korea’s prosecutor’s office where he was questioned for 22 hours for his alleged involvement in bribing, embezzlement and perjury.

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  • Lee will be detained at the detention centre in Southern Seoul

    Lee will be detained at the detention centre in Southern Seoul

    On 16th January, the prosecutor’s office issued an arrest warrant for Lee, putting Lee behind bars. This was the first time a high-executive from Samsung was arrested since the company’s inception in 1938. Apart from the bribery scandal, Lee has been additionally accused of hiding assets abroad and thereby, concealing the profits gained from illegal activities. It’s possible that Lee will be detained at the detention centre in Southern Seoul where he would be awaiting the court’s decision. The prosecutors will have up to 10 days to indict Lee. The court will have to make a ruling within three months if he is indicted. A Samsung spokesperson told Reuters that no decision has been made so far on whether to contest Lee’s arrest or seek bail.

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  • Samsung's shares tumbled after his arrest

    Samsung's shares tumbled after his arrest

    The arrest has already created ripples within the company and in the stock markets. Shares of Samsung Electronics Co. tumbled by 1.4 per cent while Samsung C&T Corp’s shares fell by 2.8 per cent. This compared to a wider market drop of 0.2 per cent is devastating for the company.

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  • Samsung has not announced any personnel promotions yet

    Samsung has not announced any personnel promotions yet

    Ever since the scandal broke, Samsung’s internal staff has been stuck in a limbo as well. The company which employs around 500,000 people has not announced any personnel promotions and changes which are usually done in December. The chief scion’s arrest definitely makes things difficult for Samsung which has already suffered a massive setback due to the disastrous Galaxy Note 7, involved in multiple spontaneous combustion cases.

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  • A huge blow to Samsung's reputation

    A huge blow to Samsung's reputation

    Samsung is South Korea’s biggest company and contributes 17 per cent of South Korea’s GDP. With a brand as globally recognised as Samsung, the arrest of the company’s head will be a huge blow to its reputation.

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