South Korean prosecutors charged the de facto chief of Samsung, Lee Jae-yong, with bribery and embezzlement on Tuesday, the latest development in a graft scandal that has rocked the country.
Mr. Lee, 48, was arrested on Feb. 17 on suspicion of involvement in a corruption scandal that led to the impeachment of President Park Geun-hye. The special prosecutor’s office said on Tuesday, the last day of its investigation, that it had charged Mr. Lee and four other executives with bribery and embezzlement.
The charges against Mr. Lee include promising bribes to a company and organizations tied to Ms. Park’s confidante, Choi Soon-sil, to cement his control of the Samsung Group, whose business activities are as varied as smartphones, washing machines and biopharmaceuticals.
“We apologize for the social controversy and distress we have caused,” Lee June, executive vice president of the company, told reporters.
The charges came before a Constitutional Court ruling on whether to uphold Parliament’s decision in December to impeach Ms. Park or to reinstate her. The case centers on accusations that she colluded with Ms. Choi to pressure big businesses, including Samsung, to donate to two foundations set up to back the president’s policy initiatives.
Ms. Park, 65, the daughter of a former military strongman, has had her presidential powers suspended. The Constitutional Court’s ruling is expected in March.
Should it uphold the impeachment, Ms. Park would become the country’s first democratically elected president to be thrown out of office. While a sitting president cannot be indicted, the special prosecutors nevertheless have classified her as a suspect.
They did not disclose specifics of the charges against Mr. Lee or the other Samsung executives. The conglomerate, which has denied paying bribes to Ms. Park or seeking improper favors from her, declined to comment on the indictment.
Ms. Park, Ms. Choi and Me. Lee have all denied wrongdoing. Based on the main charges levied against Mr. Lee, he could face up to 20 years in prison if convicted.
On Tuesday, Samsung also announced the dismantling of its corporate strategy office.
Mr. Lee, who inherited corporate control of Samsung from his incapacitated father, Lee Kun-hee, had promised in December to shut down the office, a nerve center for major initiatives such as investment in new businesses, amid accusations by politicians that it was central to illicit lobbying efforts. With around 200 employees picked from various affiliates, the office did not exist as a legal entity but wielded enormous power as the instrument of control for the Lee family.
Samsung said the chief executives and boards of the various units, such as Samsung Electronics and Samsung C&T Corporation, would set their own course going forward.
“It is a shock that Samsung completely dismantled the whole office, cutting the link between group affiliates as if it broke up a fleet,” said Chung Sun-sup, chief executive of the corporate research firm Chaebul.com. “This is a significant change to South Korea’s chaebol management style.”
A Samsung Group spokeswoman said it had not yet decided how the conglomerate would deal with group-level issues such as coordination among affiliates.
The prosecutors also charged four Samsung officials for offenses including bribery and hiding assets overseas: Choi Gee-sung, the group vice president; Chang Choong-ki, the conglomerate’s president; Park Sang-jin, the president of Samsung Electronics; and Hwang Sung-soo, the executive vice president.
Mr. Lee is accused of pledging 43 billion won, or about $38 million, in bribes, including to sponsor the equestrian career of Ms. Choi’s daughter. Samsung Group also said on Tuesday that it would leave the Korean Equestrian Federation that it leads.
Lee Kyu-chul, a spokesman for the special prosecutor’s office, said that the case against Ms. Park would be handed over to regular prosecutors, but signaled that other conglomerates could become involved in the investigation.
It was not immediately clear when Mr. Lee’s trial would begin. The special prosecutor’s office will deliver a final report on its investigation on March 6.
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