Samsung - Current Affairs Questions and Answers

ANSWER: Samsung

Explanation:
South Korean prosecutors charged Samsung Group chief Jay Y. Lee with bribery and embezzlement on 28th March 2017 as the top businesses announced the dismantling of its corporate strategy office.

This is the latest development in the graft scandal that rocked the nation.

48-year-old Lee was arrested on Feb 17, over the alleged role in the corruption scandal involving impeached president Park Geun-hye.

This is a fresh blow for the conglomerate in Asia's 4th largest economy.

Lee, the third generation leader of the tech major chaebol and 4 other executives were charged with bribery and embezzlement.

Charges against Lee include pledging bribery to companies and organizations tied to Park's confidant, Choi Soon-sil to cement control of his business empire.

The charges came ahead of a Constitutional Court ruling on whether to uphold parliament's December impeachment of Park.

That impeachment was triggered by accusations that she colluded with Choi to pressure big businesses, including Samsung, to donate to two foundations set up to back the president's policy initiatives.

The 65-year-old daughter of a former military strongman has had her powers suspended. The Constitutional Court's ruling is expected sometime in March.

In case of impeachment, 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 Lee or other Samsung executives.

Samsung Group, which has denied paying bribes to Park or seeking improper favours from her, declined to comment on the indictment.

Park, Choi and Lee have all denied wrongdoing. Based on the main charges levied against Lee, he could face up to 20 years in prison if convicted.

Samsung's corporate strategy office, a key nerve centre responsible for major initiatives such as investment in new businesses, amid accusations by politicians that it was a key organ for illicit lobbying efforts was also shut down.

Composed of around 200 employees hand-picked from various affiliates, the office did not exist as a legal entity but wielded enormous power as the instrument of control for the founding Lee family.

Samsung said the chief executives and boards of the various affiliates such as Samsung Electronics and Samsung C&T Corp would set their own course going forward.

This is a massive 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.

Lee was already moving towards more board-centric management to improve governance.

The executive became a board member of Samsung Electronics last year.

The prosecutors also charged four more at Samsung with offences including bribery and hiding assets overseas - group Vice Chairman Choi Gee-sung, President Chang Choong-ki, Samsung Electronics President Park Sang-jin and Executive Vice President Hwang Sung-soo.

Samsung Group said in its announcement that Choi, Chang and Park had resigned.

Samsung chief Lee is accused of pledging 43 billion won ($38 million) in bribes to a company and organisations backed by President Park's confidant, Choi.

Samsung: Know More

• Headquarters: Seoul, South Korea
• Founder: Lee Byung-chul
• Founded: 1 March 1938, Daegu, South Korea
• Owner: Lee Kun-hee
• Revenue: 305 billion USD (2014)
• Number of employees: 489,000

ANSWER: Jay Y.Lee

Explanation:
Samsung Group chief Jay Y. Lee was arrested early on 17th Feb 2017 over his alleged role in a corruption scandal rocking the highest levels of power in South Korea.

This is dealing a fresh blow to the world's biggest maker of smartphones and memory chips.

The 48-year-old Lee, scion of the country's richest family, was taken into custody at the Seoul Detention Centre after waiting there overnight for the decision.

He was being held in a single cell with a TV and desk, a jail official said.

Lee is a suspect in the influence-peddling scandal that led parliament to impeach President Park Geun-hye in December.

This decision if upheld by the Constitutional Court would make her the country's first democratically elected leader forced from office.

Shares in flagship Samsung Electronics Co Ltd opened down 1.2 percent+ , while shares in Samsung C&T Corp , the de facto holding company of Samsung Group, opened down 3.2 percent compared with the wider market's drop of 0.45 percent.

Prosecutors have up to 10 days to indict Lee, Samsung's third-generation leader, although they can seek an extension.

After indictment, a court would be required to make a ruling within three months.

Samsung and Lee have denied wrongdoing in the case.

The same court had rejected a request last month to arrest Lee, but prosecutors brought additional accusations against Lee, seeking his arrest on bribery and other charges.

The judge rejected the prosecution's request to arrest Samsung Electronics president Park Sang-jin.

Lee's detention could hinder strategic decision-making by South Korea's biggest conglomerate.

Samsung has been in the midst of an ongoing restructuring to clear a succession path for Lee to assume control after his father was incapacitated by a heart attack in 2014.

Lee's incarceration comes as Samsung Electronics tries to get past the disastrous roll out last year of its Galaxy Note 7 smartphones, which were prone to fires.

It is under pressure for the upcoming launch of its next flagship phone, the Galaxy S8, to be a success.

Prosecutors have focused on Samsung's relationship with Park, 65.

They are accusing the group of paying bribes totalling 43 billion won ($37.74 million) to organizations linked to Choi to secure government backing for the 2015 merger of two Samsung units.

Samsung: Know More

• Headquarters: Seoul, South Korea
• Founder: Lee Byung-chul
• Founded: 1 March 1938, Daegu, South Korea
• Owner: Lee Kun-hee
• Revenue: 305 billion USD (2014)
• Number of employees: 489,000
• Subsidiaries: Samsung Electronics Limited

ANSWER: Samsung Electronics

Explanation:
Vice Chairman Lee Jae yong will be appointed as the registered ED on board of South Korean electronics major Samsung Electronics

• Decision was made due to urgent need for strategic decision making on aggressive investments and new growth engines from a long term perspective
• Lee Jae yong is the eldest child and only son of Chairman Samsung,Lee Kun hee
• He has received a degree in East Asian history at Seoul National University and MBA from Keio University
• He is referred to as the Crown Prince of Samsung, by the South Korean media
• He is the third wealthiest person in South Korea
• His wealth is estimated to be USD 7.9 billion and in 2014 he was named the 35th most powerful person in the world and the most powerful Korean by Fortune magazine