The successor of the Samsung Empire has been spared from arrest over the controversial merger


The court rejected the request for an arrest warrant for the descendants of the South Korean Samsung Empire for lack of sufficient grounds for a controversial merger but continues its review of bribery and kidnapping charges.


A South Korean court on Tuesday refused to issue an arrest warrant for the descendant of the country's Samsung empire, which was considered an important step in his legacy following the controversial merger of the two heirs.


Samsung Electronics Vice Chairman Lee Jae-Yong has already been charged with bribery, kidnapping, and other crimes in a corruption scandal that brought down former South Korean President Park Geun-hee.


The merger case differs from their ongoing reset but adds to the trouble for Samsung Group, the largest of the family-controlled Cooglomerates or Chebbles, which dominates the business in the world's 12th largest economy.


Prosecutors have sought an arrest warrant on suspicion that Lee was involved in price manipulation and illegal trading during the merger of Chile Industries and Samsung C&T.


But the Seoul Central District Court rejected the prosecution's request, ruling that there was insufficient reason for his arrest or for two Samsung executives.


Judge Won Jung-suk stated in the court's statement that "there is no adequate explanation of the need to arrest defendants against the doctrine of trial without detention."


"Prosecutors have already obtained sufficient evidence through their investigation," she said.


He said if Lee acted illegally, he would be sued.


Lee attended the hearing, the Yonhap News Agency lasted about nine hours and then awaited a court decision at the detention center. He emerged at 2:40 am on Tuesday morning and briefed reporters, but did not ask how he felt about the decision.


Lee took off in a black sedan.


The merger transaction will help ensure a third-generation power transfer to a group called Lee, a group of Samsung's founding families.


Chaebol families often hold only a small ownership stake in their realms but are controlled by the complex web of cross-shareholding between units.


Apologies


Lee is the largest shareholder in Chell Industries, and Samsung wants to artificially lower the price of C&T to give it a bigger stake in the merged company, which is a key part of the Samsung Structure Part, which strengthens its grip on the group.


Last week, Samsung Group dismissed media reports of price manipulation as "baseless", saying in a statement that Lee was not involved in "any illegal activity."


The solicitors' request came just weeks after Lee promised to issue a comprehensive apology for the company's misconduct and end the family's legacy.


Lee, 51, topped South Korea's largest business group, Samsung, as his father and Samsung group boss Lee Kun-hee suffered a heart attack in 2014.


Despite being sentenced to five years in prison in 2017 for the Park Corruption scandal, he was released on appeal a year before the country's highest court ordered a new trial.


Samsung's total turnover equals one-fifth of national GDP, which is important for South Korea's economic health.


The company's first-quarter net profit fell by $ 4.88 trillion ($ 4 billion), impacting the coronavirus pandemic.


Samsung, which has discontinued operations on 11 foreign assembly lines, has warned that consumer demand will continue to worsen as the disease is significantly affected by the disease.

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