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Samsung Heir Questioned In Succession-Related Probe

The prosecutors’ workplace confirmed Jay Y Lee was summoned for questioning.

Seoul:

Samsung Group inheritor Jay Y Lee was questioned on Tuesday by prosecutors a few controversial 2015 merger and alleged accounting fraud that they mentioned might have helped him advance his succession-planning agenda on the nation’s high conglomerate.

The questioning brings recent authorized hassle for Lee who’s already going through courtroom trial over a cost of bribery geared toward successful assist to succeed ailing group patriarch Lee Kun-hee, and which concerned former South Korean President Park Geun-hye.

Prosecutors have been investigating suspected accounting fraud at drug firm Samsung Biologics after the Korean monetary watchdog complained the agency’s worth had been inflated by 4.5 trillion gained ($3.64 billion) in 2015.

They have alleged that Biologics had violated accounting guidelines to assist enhance the worth of its main proprietor Cheil Industries, which counted Lee as its high shareholder, Yonhap News Agency, which first reported Lee’s questioning, mentioned.

Cheil, Samsung Group’s vogue and theme-park operator, merged with de reality group holding firm Samsung C&T in a 2015 transaction that enabled Lee to turn into the highest shareholder of Samsung C&T.

The deal was criticised by U.S. hedge fund Elliott Management and different traders for favouring relations on the expense of minority shareholders.

The prosecutors’ workplace confirmed Lee was summoned for questioning.

“We today summoned a relevant person with regard to Samsung Group’s illegal merger and accounting fraud case,” an official on the Seoul Central District Prosecutors’ workplace advised Reuters.

A spokesman at Samsung Electronics, the conglomerate’s largest firm the place Lee is vice chairman, declined to remark.

Lee, 51, served a one-year detention over the bribery case till it was suspended in 2018, however the potential of a more durable sentence has emerged after the Supreme Court overturned a decrease courtroom ruling on the case final yr.

Earlier this month Lee apologised for the bribery scandal and pledged that he wouldn’t go on the corporate based by his grandfather to his youngsters. But it has been criticised by governance consultants for missing particulars.

“There are still a lot of controversies related to his management succession. He will not be able to avoid public criticism,” mentioned Park Ju-gun, head of analysis agency CEO Score.

(Except for the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)

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