Samsung heir to be indicted on corruption charges

He had been arrested earlier this month as prosecutors prepared the indictment.

The younger Lee, the vice chairman of Samsung Electronics, has taken the helm of the electronics giant since his father was hospitalized for heart attack in May 2014.

Investigators also confirmed that they will send 18 more suspects to trial, over their alleged connection to the presidential corruption case. Since Lee is the de-facto head of the company, he has to stay with the organization until the trail.

But Chung Sun-Sup, the head of chaebol.com, a private watchdog forum on conglomerates, said: “It is yet to be seen whether this is another cosmetic measure aimed to divert public criticism”.

– Grandson of Samsung founder Lee Byung-chul, son of current chairman Lee Kun-hee. The merger, a crucial step for Lee to strengthen his grip on Samsung Electronics, was a key benefit that Samsung sought from the government by offering millions of dollars to Choi’s various entities, according to the prosecutors.

The news of the formal charges against the five has had little immediate effect on the markets, with Samsung shares ending slightly higher on Tuesday.

At that time, it was customary for presidents to pardon business leaders, acknowledging large companies’ past and future contributions to the national economy.

Acting President Hwang Kyo-Ahn, who is standing in for Park while the Constitutional Court decides whether to remove her from the Blue House, rejected the special prosecutors’ request for an extension, citing concerns for political stability.

Choi, who has denied charges of attempted fraud and abuse of power, is accused of using the money for personal gain. However, a president can be punished if he or she resigns or is impeached.

The bribery allegation surfaced as authorities expanded investigations into a political scandal that led to Park’s parliamentary impeachment.

The suspended state chief, who is now awaiting for the Constitutional Court’s final ruling in her impeachment, yet has the constitutional immunity to criminal prosecution. If she is forced out, a new election would be held within two months to choose her successor.

Another potential risk is a change in South Korea’s government, which could apply more pressure against the system of chaebols, the tightly linked business conglomerates in the country that are controlled by a handful of families.