Samsung shares recover after arrest warrant for heir rejected
Seoul, Jan 19 (IANS) Shares of the Samsung group on Thursday began to recover after a South Korean court rejected a request by prosecutors to arrest the tech giant’s president Lee Jae-yong despite alleged charges of bribery, perjury and embezzlement.
At 9.17 a.m., Samsung Electronics shares – the most important for the group – rose 2 per cent, Efe news reported.
Shares for other companies of the group including Samsung Heavy Industries, battery maker Samsung SDI and construction company Samsung C&T rose 0.96, 0.89 and 2.85 per cent, respectively.
Samsung shares had suffered since prosecutors on Monday requested an arrest warrant for Lee over donations made to foundations and companies allegedly controlled by Choi Soon-il, nicknamed South Korea’s “female Rasputin” and a close friend of President Park Geun-hye, in return for business favours.
Prosecutors, who accuse Lee of bribery and embezzlement, as well as perjury over his parliamentary testimony last month, believe the donations were made in exchange for the support of Park’s government over a controversial merger between two Samsung subsidiaries in 2015.
Lee and other Samsung group executives admitted making donations of 43 billion won ($35 million), but denied that they were in exchange for business favours from the authorities.