The biggest conglomerate in South Korea is not an exemption to the country’s justice system.
Samsung shares took a dramatic dive on Monday session following the news that South Korean prosecutors sought a warrant of arrest for the firm’s heir apparent, Jae Y. Lee, for being involved in multi-million bribery scandal.
Justice Over Wealth
With the controversial affair hounding Korea’s largest tech-firm, Samsung shares in the stock market all ended in the bearish territory to start the week, with the heavily-weighted Samsung Electronics giving up 2.14%.
The Samsung Heavy Industries settled down 0.95% while the Samsung Engineering and the Samsung C&T shed 3.43% and 0.78% respectively.
The Monday-debacle was due to the recent scandal involving Samsung electronics Vice Chairman, Jae Y. Lee, as a special investigation team probing the case pointed out Lee’s participation in a series of bribery, embezzlement and perjury, to which the corporate money were used to pay bribes to a friend of President Park Geun-hye to receive favorable treatment from the government.
The tech-giant, Samsung, is the country’s largest conglomerate and the firm accounts for a fifth of Korean exports but the spokesman of independent counsel, Lee Kyu-Chul, quickly pointed out that upholding justice is more important than national economy.
He also said that certain economic effects would be taken into consideration in arresting one of the biggest names in the industry.
Samsung has issued a statement on the same day saying that the prosecutors’ conclusion was a bitter pill to swallow, claiming that the group “did not make contributions in order to receive favors.”