Lee Jae-Yong, the de facto head and vice chairman of Samsung, is in trouble again right after the Seoul Central District Prosecutors’ Office filed an arrest warrant for him and two previous executives, Choi Ji-sung and Kim Jong-Joong.
Back in 2017, Lee was sentenced to 5 yrs in prison, adhering to an investigation into expenses of bribery, embezzlement, and perjury (he was launched quickly right after in 2018).
This time all around, Lee and the two previous execs are charged with committing unlawful transactions and market place manipulation relevant to the merger amongst Samsung C&T and Cheil Industries again in 2015.
Cheil is a big owner of Samsung BioLogics and Lee is Cheils major shareholder. What the prosecution is alleging is that accounting fraud was dedicated to raising the valuation of BioLogics (by $3.7 billion, by a Korean economic enjoy canine), just just before the merger with Samsung C&T. Cheil Industries is itself an affiliate of the Samsung Team, theres a lot to untangle right here.
In July very last year, the prosecution requested arrest warrants for three executives of Samsung BioLogics, such as CEO Kim Tae-Han. They were being accused of shifting the ownership position of Samsung Bioepis from subsidiary to affiliate, which induced a distinctive accounting approach, causing a surge in the valuation of Bioepis (and in turn the valuation of BioLogics and Cheil Industries).
