A court in South Korea has refused to issue a warrant for the arrest of the acting head of Samsung, Jay Y Lee, over his alleged role in a corruption and influence-peddling scandal that threatens to bring down the country’s impeached president, Park Geun-hye.
Special prosecutors investigating Park’s relationship with her longtime confidante, Choi Soon-sil, had demanded Lee’s arrest on charges of bribery, embezzlement and perjury.
They accused Lee, the 48-year-old heir apparent to the Samsung group – South Korea’s biggest family-run conglomerate – of paying US$36.6m in bribes to Choi. In return, he allegedly sought government approval for the controversial 2015 merger of two Samsung affiliates – a move that would smooth his path to the top of the Samsung group.
The involvement of one of South Korea’s most powerful men has rocked the country’s business world, as it signalled that prosecutors were prepared to use the full force of the law against the head of a company whose revenues are equivalent to a fifth of the country’s GDP.
But the Seoul central district court’s refusal to issue an arrest warrant, following 18 hours of deliberation that ended just before dawn on Thursday, risks hampering the prosecutors’ investigation into Park.
It could also make it more difficult to investigate other companies that are suspected of paying money to shady foundations run by Choi that she is alleged to have used for her personal benefit.
Park, who was impeached last month, must wait for South Korea’s constitutional court to rule on the impeachment vote’s validity – a process that could last another five months.
If the court approves December’s parliamentary vote to impeach, Park would become the country’s first democratically elected leader to be forced from office. South Koreans would then have to elect a new president within 60 days, and Park would lose her immunity to criminal indictment.
She is suspected of colluding with Choi, who is on trial for coercion and abuse of power, to extract money from the firms, and of allowing Choi, a friend of 40 years, to exert undue influence over key government policies, including South Korea’s relations with North Korea.
Lee, who has been Samsung’s de facto head since his father suffered a heart attack more than two years ago, waited 18 hours at Seoul detention centre for the court to reach its decision.
Carrying a white shopping bag, Lee did not respond to reporters’ questions as he was led out of the building by a security guard and into a waiting car.
While prosecutors still have the option of arresting Lee at a later date, they have so far failed to convince the court that the money Samsung paid to Choi was connected to Samsung’s third-generation succession.
“After reviewing the contents and the process of the investigation so far ... it is difficult to acknowledge the necessity and substantiality of an arrest at the current stage,” the judge said.
The special prosecutor’s office said it “deeply regretted” the court’s ruling and vowed to continue its investigation into the scandal. “We will consider necessary measures and continue with the investigation without wavering,” special prosecution spokesman Lee Kyu-chul told reporters.
According to South Korean media, Samsung claimed that Park had pressured it into donating to Choi’s foundations, but the firm insisted it had not expected any special favours in return.
“We appreciate the fact that the merits of this case can now be determined without the need for detention,” Samsung said in a statement on Thursday.
The main opposition Democratic party accused the court of showing undue leniency to Samsung and its heir apparent, whose net worth is estimated at US$5.8bn. “The president was impeached and Choi Soon-sil was arrested ... but Samsung is still fine,” it said in a statement.
