Review of Samsung probes

Prosecutors may request arrest warrant for Lee Jae-yong

Samsung Group is trying to save Lee Jae-yong, the heir-apparent of the nation's largest conglomerate, from criminal charges including using suspected illegal methods in the transfer of the group's managerial control. Lee and some top-ranking executives asked the prosecution, Tuesday, to convene a committee of outside experts to review the validity of the potential indictment.

The Seoul Central District Prosecutors' Office is expected to convene a panel composed of prosecutors and civic groups to decide whether to accept their demand. If the panel decides to convene the review committee, civic experts will determine whether to indict Lee and other Samsung officials and place them in custody. 

 

However, prosecutors sought arrest warrants for Lee and two former top executives, Choi Gee-sung and Kim Jong-joong,Thursday, on charges of illegal management transfer and accounting fraud. Lee faces suspicions of stock price manipulation and audit rule violations, among other offenses, according to the prosecution. The move comes amid concerns that the investigation might hit a snag due to Samsung's application for a review of the case by outside experts.

 

The Prosecutorial Investigation Review Committee system was introduced in 2018, after the prosecution agreed to subject itself to outside scrutiny on cases of high public interest. However, the committee has held only eight meetings since its launch, and most of these were opened under the authority of the prosecutor general, not at the request of litigants. This is hardly surprising, however, considering few people under investigation would be bold enough to challenge the investigators. That shows how unusual the situation Lee and other Samsung executives are facing is.

 

 

 

The critical point of the case is Samsung Electronics Vice Chairman Lee's possible involvement in the suspected unlawful merger of two significant group affiliates ― Samsung C&T and Cheil Industries ― and the alleged accounting fraud by Samsung Biologics. Prosecutors think both the merger and accounting scandal were aimed at ensuring a stable handover of management control from Lee Kun-hee, the group's ailing patriarch, to his only son. In contrast, the business group is denying these allegations, saying such manipulations were neither probable nor possible. 

 

As the two sides' positions are sharply different, it is difficult to criticize Samsung for seeking an opportunity for an outside assessment. At stake now is how the civic panel and the review committee can make just and wise judgments based on a careful and objective analysis of the prosecution's investigation.

 

 

Neither an unreasonable indictment nor a wrist-slapping on grave violations are desirable in this regard. Notably, the economic crisis caused by the coronavirus pandemic should not be allowed to affect their judgments. All this explains why the participants should draw a conclusion solely based on sustainable truth.