Yesterday we reported that an arrest warrant request of Samsung Heir, Lee Jae-yung by his prosecutors was awaiting court orders which could see him being held up in detention or about 20 days even before charges would be brought against him but the court has denied that request.
Lee Jae-yung who is Samsung electronics vice chairman and the heir to the de-facto Samsung Group conglomerate had been accused of numerous fraudulent practices which dates as far back as the year 2015 during the merger of two of Samsung affiliates which is said to have helped Lee’s plan assume a greater control of the Samsung Group.
He’s also accused of accounting fraud and stock manipulations among other allegations which involved the former president of the country, Park Geun-hye.
“It appears that prosecutors have secured considerable amount of evidence through their investigation, but they fell short of explaining the validity to detain Lee,” the Seoul Central District Court said in a statement.
Samsung was not immediately available for comment.
The court has however denied Lee’s arrest which come amid allegations that he was transacting and manipulating stock worth which allowed the US$8 billion merger of the Samsung C&T and Cheil Industries; both Samsung affiliates back in the year 2015.
The Samsung heir arrest warrant request was expected since Monday when Lee appeared in court over the allegations. Lee had stated he would not allow his children to inherit the company as the company had been run within the family whereby Lee is the grand child of the founder of the company.
The merger was seen as key to Lee increasing control of the sprawling group but critics say it rode roughshod over the interests of minority investors. Though denied an arrest warrant request, prosecutors may reapply for another arrest warrant subjected to further investigations which may bring Lee behind bars.