Lee Jae-yong, the Vice President of Samsung, who was arrested on Feb. 17 for his supposed role in the bribery scandal has been found guilty on several counts, including embezzlement and improper use of the company's corporate strategy office.
Lee along with four other executives, will be facing trial as they have been accused of donating millions of dollars to a foundation in return for a government favor.
On Tuesday, Feb. 28, during the final day of the investigation, prosecutors charged the Samsung VP, who has been running the company since the time his father suffered a heart attack in 2014, with bribery, hiding assets overseas, embezzlement, and also accused him of committing perjury.
The other four executives are facing the same charges except perjury. They are Samsung Vice Chairman Choi Gee-sung and President Chang Choong-ki, along with Samsung Electronics President Park Sang-jin EVP and Hwang Sung-soo.
Except Lee, many of the executives are expected to resign and exit the company. Since Lee is the de-facto head of the company, he has to stay with the organization until the trial.
Who All Will Be Arrested
South Korean President Park Geun-hye, was impeached by the parliament after she was accused of conspiring with Choi Soon-sil, to force other important South Korean companies to donate around $70million to the latter's foundation.
Though later on the Choi Soon-sil denied such charges, the court has accused him of utilizing the money received as donation for personal gain. Per the reports, Samsung was one of the highest single donor of Choi's foundation, which he had created to help Park with her policy initiatives.
In order to make his path clear from any roadblocks, Lee reportedly took help from the government for the $8 billion merger of two Samsung partners in 2015.
Though the $8 billion merger was opposed by many of the shareholders, after getting funded by the national pension fund, it got approved.
"It is yet to be seen whether this is another cosmetic measure aimed to divert public criticism," says Chung Sun-sup, the head of watchdog chaebol.com.
Chung Sun-sup also added that several times in the past, Samsung has disintegrated several "group-controlling organizations" when the company was caught red-handed breaking the law.
However, South Korea's constitutional court is expected to declare the results based on the impeachment votes, before the retirement of Lee Jung-mi, the acting chief justice, on March 13.
Per reports, right after the declaration made by the court, Park Geun-hye will be losing her immunity instantly on the basis of criminal impeachment, which means that South Korea will have to elect their new President within a span of 60 days.
