South Korean prosecutors have filed for an arrest warrant for Samsung Group's heir Jay Y. Lee and two other former company executives as the investigation continues about controversies over a 2015 merger and alleged accounting fraud that hastened his succession.
If granted, this would pave for more jail time for Lee who just got out of prison in February 2018.
Lee, the 330th richest man in the world, according to Forbes, has a net worth of $6.3 billion. He is the vice-chairman of Samsung Electronics and heir to South Korea's biggest conglomerate.
Prosecutors want Samsung Group's Heir Jay Y. Lee's arrested for fraud and merger issues
Lee is currently facing a charge of bribery in his attempt to win support to succeed Samsung's patriarch Lee Kun-hee who suffered a heart attack in May 2014 and remains hospitalized.
Lee spent a year in detention until the case was suspended in 2018. His cohort was former South Korean President Park Geun-Hye who was convicted of bribery and abuse of power and was sentenced to 25 years imprisonment in 2018.
Lee was accused of bribing Park to win government support for the 2015 merger that helped him tighten his control over his father's conglomerate. The Supreme Court then ordered a retrial for Lee's bribery charges.
Last year, Samsung stated that it "deeply regrets that this case has created concerns across the society" and vowed to renew its promise in "carrying out the role of a responsible corporate citizen and will avoid a recurrence of past mistakes."
Prosecutors seek for Lee's arrest
On Thursday, June 4, prosecutors said they are pursuing Lee's arrest on suspicion of stock price manipulation and audit rule violations, among other infringements.
While Samsung declined to comment on the issue, shares for Samsung Electronics were up 1.1%, outperforming a 0.2% rise in the benchmark.
Meanwhile, prosecutors have been investigating an alleged accounting fraud at Samsung's drug company, Biologics, after the financial watchdog criticized how its value was overblown by 4.5 trillion won ($3.7 billion) in 2015.
Prosecutors argue that this instance boosted the value of its major owner, Cheil Industries, in which Lee was among the top shareholders. Cheil Industries later merged in the same year with Samsung C&T, a de facto holding firm, according to Yonhap news agency said.
The merger gave a favorable rate for Lee who was then the biggest shareholder in Cheil Industries. Critics also argued that the merger made Lee the largest shareholder of Samsung's de-facto holding company and paved the way for his succession from his ailing father. However, Lee has previously denied charges.
The Seoul Central District Prosecutors' Office said it is following the necessary procedures after Samsung demanded an external assessment of the investigation to check the validity of the charges.
Last month, Lee appeared before prosecutors who questioned him over the latest probes. He apologized for the controversies that have been clouding his succession
