‘Crown Prince’ Samsung was summoned for interrogation, again facing the risk of imprisonment

Samsung Group heir Lee Jaeyong was questioned by prosecutors on Tuesday about a controversial 2015 merger. Besides, the accounting fraud allegations that the prosecutor thinks may have helped him gain control of the family’s most important business empire.

The interrogation brought new legal trouble to Lee, who is facing a bribery trial in order to gain support for success and involves the deposed former Korean President. , Mrs. Park Geun-hye.

Prosecutors investigated suspected accounting frauds at Samsung Biologics, after the Korean financial watchdog said the company’s value had been inflated to 4.5 trillion won. 3.64 billion USD) in 2015.

They allege that Biologics violated accounting rules to add value to Cheil Industries, the company’s major owner. Lee Jaeyong is also Cheil Industries’ top shareholder, Yonhap news agency said.

Samsung Group, South Korea’s largest conglomerate with more than US $ 400 billion in market value, has struggled with legal issues over the years.

Cheil, the company that owns the amusement park system and Samsung Group’s fashion system, merged with the holding company of Samsung C&T in a 2015 deal, which allowed Lee to become a shareholder. head of Samsung C&T.

The deal has been criticized by hedge fund Elliott Management of the United States and other investors because it believes the group supports family members and disadvantages minority shareholders.

Prosecutors confirmed Lee was summoned for questioning on Tuesday. An official at the Seoul Central District Prosecutor’s Office earlier said: “We are currently summoning a person involved in the Samsung Group’s accounting merger and illegal fraud.”

A spokesman for Samsung Electronics, the group’s largest company, where Mr. Lee Jaeyong is currently vice president, declined to comment further.

Samsung Group, South Korea’s largest conglomerate with more than US $ 400 billion in market value, has struggled with legal issues over the years. Dozens of current and former executives have been questioned, prosecuted or arrested for crimes related to corruption and accounting issues to union bankruptcy.

Lee, 51, was sentenced to prison for about a year until released in early 2018, then returned to court for a retrial last year when the scope of the false allegations was revised. This time, Mr. Lee continues to face the possibility of imprisonment.

The Korean billionaire unexpectedly apologized to the media and the people for his mistakes when he took the leadership position, and he further pledged his children to never run the corporation.

The persistent legal battle has broken his tenure at the leadership of Samsung Electronics, the world’s leading maker of smartphones and memory chips.

This month, the South Korean billionaire unexpectedly apologized to the media and the public for his mistakes when he took the leadership position, and he further pledged his children to never run the group.

“I stand here today and promise that from now on there will be no more argument about the succession of the corporation. There will be absolutely no illegal activity, ”Lee Jaeyong said at a recent press conference. “My only focus will be on raising the value of Samsung’s business.”

According to SCMP