Samsung Chief Arrested on Bribery Charges in Corruption Scandal

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Feb 17, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    Samsung chief Jay Y Lee has been arrested over his alleged role in an influence-peddling scandal that reaches to the highest levels of the South Korean government, it was reported on Friday.

    Reuters said the 48-year-old vice-chairman and heir-apparent of Samsung was taken into custody at the Seoul Detention Center on Friday morning, after waiting there overnight for the decision.

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    Image via Reuters

    South Korea's special prosecutor's office accuses Lee of bribing a close friend of President Park Geun-hye - who is currently facing impeachment over the scandal - in order to win favors related to leadership succession at Samsung Group. Lee now faces charges including bribery, embezzlement, hiding assets overseas, and perjury. Both Geun-hye and Lee have denied wrongdoing in the case.

    Prosecutors have up to 10 days to indict Lee, but they can seek an extension. After indictment, a court must then make its first ruling within three months. Currently there's no word on whether lawyers representing Lee will contest the arrest or seek bail.

    Shares in Samsung ended Friday down 0.42 percent, in line with a flat wider market. Ratings agencies say they don't expect any impact on the company's credit ratings, claiming Lee's arrest will accelerate improvements in corporate transparency and governance.

    Meanwhile, Lee's arrest is not expected to hamper day-to-day operations at Samsung's divisions, which are run by professional managers. That said, the conglomerate is currently going through a restructuring to clear a succession path for Lee to assume control after his father suffered a heart attack in 2014, suggesting strategic decision-making on the issue could be affected.

    Lee's detention comes as Samsung tries to resuscitate its Galaxy brand following last year's Note7 debacle, in which the handsets were prone to setting on fire whilst charging. The company is hoping that its Galaxy S8, expected to launch in April, will bring the brand back on course in a crucial year when Apple is expected to announce a "tenth anniversary" iPhone 8, for which Samsung will also provide 160 million OLED display panels.

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

    Article Link: Samsung Chief Arrested on Bribery Charges in Corruption Scandal
     
  2. Keniutek macrumors 6502

    Keniutek

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    You don't make billions by being nice and just. Every government and every big company is corrupted, no doubt in my mind.
     
  3. Evil Spoonman macrumors 6502

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    Samsung is a fascinating company. They absolutely have fantastic engineering teams, and lofty technologies that are worthy of our appreciation. They haven't become this valuable and this well regarded for no reason. So anybody throwing Samsung in the dirt just because they are "the competition" and often behave unethically isn't being nuanced enough.

    What seems to fall apart repeatedly is their management and product layer. Samsung products that don't need any extra design to be good are often really rather good. SSDs, displays, and so forth. The products that need to be designed to be more than just a collection of parts are consistently lacking. Phones, laptops, etc.

    Samsung's management team, including product management, simply are prototypical of the worst style of management. Political, amoral, bureaucratic, committee-driven, lacking in vision or resolve. And here it bites them again. We shouldn't be surprised. But we should feel bad for the engineers who create amazing things at Samsung, but never get to share them properly.
     
  4. HiRez macrumors 603

    HiRez

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    I'm actually kind of surprised this happened, considering the Lee family's hold on everything in the country, including the government. Then again, it's not the first time members of the family have been indicted, they just get pardoned later and I assume the same will happen here. For the wealthy elite, this is all just theater, they present the appearance of being in trouble to make it look like the government is keeping an eye on things, but they'll soon be back to their regular lives embezzling, giving and taking bribes, and so on.
     
  5. anubis1980 macrumors regular

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    #5
    Police need to check his pockets for note 7 phones . Perfect as incendiary devices allowing a quick escape
     
  6. meaning-matters macrumors regular

    meaning-matters

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    The world of politics is full of this, but they call it lobbying.
     
  7. needfx macrumors 68040

    needfx

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  8. SeaFox macrumors 68020

    SeaFox

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    Bribery, embezzlement, hiding assets overseas, and perjury...

    and here I thought the head of Samsung would be arrested for battery.

    /rimshot
     
  9. MH01 macrumors G4

    MH01

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    #9
    Let's see how many irrelevant note 7 posts we get.

    It should come as no surprise the corrupt nature of Korean companies. Though business practices aside Samsung do make some great stuff, of which many components make up apple products, just for some perspective
     
  10. thasan macrumors 6502a

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    #10
    with all due respect, that sounds like donald trump when he praised putin a few days ago.

    in any case, while i agree with the first half of sentence, i dont think u need to be "corrupted" to be rich. of course, the definition of corruption varies but i am certain u can be a billionaire by abiding the law and be just tough and aggressive.
     
  11. H2SO4 macrumors 68040

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    That I agree with, and before I get any fanboy comments, the famous SJ was in court over some very shady dealings IIRC. He got off with some ridiculous story about him not understaning or not knowing about the issue.
     
  12. alexgowers macrumors 6502a

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    #12
    I love that the conclusion is that Samsung will have less corruption and better governance because of this.

    This is the tip of the iceberg. That statement is just pure lies
     
  13. chr1s60 macrumors 68000

    chr1s60

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    #13
    Well this can't blow up any worse than the Note 7.
     
  14. H2SO4 macrumors 68040

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    One above you but you got admit, the line was good.
     
  15. chr1s60 macrumors 68000

    chr1s60

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    Careful about that around here. SJ never did any wrong and Cook is Satan.
     
  16. kettle macrumors 65816

    kettle

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    Their only defence is that the world system is a rigged deck - stemming from central banking and FIAT currency - the ability for a 'group' to step outside of natural supply and demand and create fulcrum and leverage for private interests - Do you ever wonder how the US is allowed to have 20 trillion in national debt or where the interest on that imaginary money goes? Money isn't real - Debt is real.
     
  17. Cybbe macrumors 6502

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    I'm not saying you're wrong. You're correct in pointing out that his father was also convicted of corruption before being pardoned for his "economic importance to the country" and similar BS. However, the anger towards the elites in Korea, manifested in the huge demonstrations against the government, is stronger than at any point before. If Lee Jae-yong gets convicted, it would take a very brave president indeed to pardon him.
     
  18. atomic.flip macrumors regular

    atomic.flip

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    #18
    As a former employee of Samsung's Mobile division and having worked in product development for a number of years I can vouch for this assessment.
     
  19. AxiomaticRubric macrumors regular

    AxiomaticRubric

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    Sad, but very true.
     
  20. atomic.flip macrumors regular

    atomic.flip

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    #20
    Things feel different this time. I suspect there is more of a 50/50 chance it could go either way for Mr. Lee. And there are other siblings. But the shame an incarceration would bring on the family would be tremendous. If I had to pick a direction today I would guess that financial penalties would be imposed with additional probationary restrictions on Mr. Lee himself but he won't serve any serious jail time.
     
  21. Mr Fusion macrumors 6502a

    Mr Fusion

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    South Korea's one seriously messed up country. Couldn't handle democracy after the ceasefire so they ended up with a rather brutal dictator well into the 80s. Now it appears that their shift towards a better government that began then is all smoke and mirrors...

    Samsung has done a lot of good for their country, but eventually these multinational conglomerates will stifle innovation and grind their economy to a halt.
     
  22. djcerla, Feb 17, 2017
    Last edited: Feb 17, 2017

    djcerla macrumors 6502a

    djcerla

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    #22
    Proof of this statement? Or just blindly defending Samsung claiming all others do the same? (Hint: they don't)
     
  23. VulchR macrumors 68000

    VulchR

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  24. Max Portakabin macrumors regular

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    As big a tit as Tim Cook is, Samsung really are a dreadful company.

    Imagine there are lots of Dyson and Sharp veterans laughing their nuts off at this.
     
  25. malexandria macrumors 6502a

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