Samsung Heir Arrest on Charges of Bribing with the President

Glossary

Eradicate- destroy completely, put to an end

Corruption- dishonest or fraudulent conduct by those in power, typically involving bribery

Bribing- To persuade someone to act in one’s favor, typically illegally

Conglomerate- number of different things or part that are put or grouped together

Parliamentary- relating to, enacted by

Chaebols- (in South Korea) a large business conglomerate, typically a family-owned one

Loyalty- faithful

Why did Lee helped Park?

Lee Jae-yong, the head of Samsung, who is close friends with President Park Geun-hye, felt pressured by their close relationship to help her. The president told him she would do him a favor in return if Lee Jae-yong gave her money. According to Gl Korea, Lee said that President Park forced his company to give billions of dollars to her confidante center. This would help Lee gain power over the Korean economy. Even though, Samsung is the 5th place GDP in South Korea. Lee still wants more power. According to The Diplomat, it states how the Korean president broke the laws to help her friend due to strong loyalty ties. In Korea it’s important to protect trust between family and friends. This is a top cultural priority.

How does this impact Korea?

This impacts Korea because the Samsung is one of the biggest technology company in South Korea. If Lee got arrest this could harm the Korean economy, jobs and investment. Lee’s skills remain unproven; he has about $6 billion from his father, who had a heart attack in 2014. Samsung is linked to this rapid economic growth because of wealth and power (omaha.com). Therefore, this will effect on a lot of people who live in Korea because there will be more people jobless. Even though, fighting against corruption is a difficult task for Korea and this has become a plague in the country. Young Koreans have a hard time finding jobs and “8/10 middle class Koreans feel poor” (Atuma). Korea economic growth will go down because of Samsung heir breaking the laws by gave money for power.

How could this problem lead to more problems in the future?

South Korea’s Lawmaker vote to impeach President Park for her careless which have caused a big national chaos. According to CNN news,“Indicated showed that 81% of those polled supported her impeachment.” If president Park got impeach this will impact a lot on Korean future president because Park is the first lady who’ve become a president. This would lead to lost trust.

Why would this cost problem to Korea?

For century, Korea have been struggling with corruption. However, this year Samsung heir got arrested which lead to many problems like losing job and money. According to article from Pensions Investment, by Douglas Appell said, “Some market veterans point to the shadow hanging over NPS' public image as a result of the indictment in January of NPS Chairman Hyung-pyo Moon as a further blow to employees' esprit de corp.” Do to Mr. Lee arrested Samsung have no ruler, that mean there is no one else is in charge of the company this would mean that Korea GDP will go down because of the effect that Samsung did. According to The Straits Times, by Chang May Choon said, “The country's untouchable chaebols have seen their reputation dragged through the mud in recent years because of scandals, corruption allegations and reports of chaebol offspring misbehaving in public.” When a big company failed this will make Korean people have harder time finding jobs for their daily life expenses. Since Korea is already have problem with corruption; having big company to do illegal stuff would not just affect on the company it effect to entire population.

Why did South Korea economy go down every year effect it country?

In South Korea big company like Samsung, Hyundai, LG and more is important to Korea because they are the backbone of South Korea’s economy. According to Stratfor, “Today, the sales revenue of the five largest chaebols constitutes almost 60 percent of South Korea's gross domestic product, and their brands — Samsung, Hyundai and LG, among others — are household names.” Since Samsung are the top most important company to help the economic growth, this would effect a lot on Korean economy when Lee Jae Yong was arrested over $35 million dollars for the offering in exchange government approval of controversial merger to help him control over the conglomerate in an attempt to evade the country’s inheritance taxes. According to CNBC, by Saheli Roy said, “Citizens have long demanded government policies to curtail the power of chaebols, which control vast network of companies through a circular holding structure and their control typically exceed cash-flow rights.” Since the citizen see what Samsung did they would lost trust on other company too, this way they would feel safer.

Works Cited

Atuma, U. (2016, Dec 19). South Korea: Fall of the first female president. The Sun Retrieved from https://search.proquest.com/docview/1850004529?accountid=42214

Cheng, Jonathan. "Samsung Heir Lee Jae-yong's Potential Arrest: Explained." The Wall Street Journal. Dow Jones & Company, 16 Jan. 2017, http://www.wsj.com/video/samsung-heir-lee-jae-yongs-potential-arrest-explained/9BC37AB3-F0DE-4309-98D5-AF953E7C3E0C.html

Fendos, Justin. “South Korea’s Corruption Culture.” The Koreans, Novermber 17, 2016, http://thediplomat.com/2016/11/south-koreas-corruption-culture/

GIKorea. "Samsung Heir Says That President Park Pressured Him to Give Money to Friend’s Organizations." ROK Drop. Athemes, 13 Jan. 2017, http://www.rokdrop.net/2017/01/samsung-heir-says-that-president-park-pressured-him-to-give-money-to-friends-organizations/.

Power, John. "Samsung chief escapes arrest, but not fully in the clear yet." Asia Times. Salamandra, 19 Jan. 2017, http://www.atimes.com/article/samsung-chief-escapes-arrest-not-fully-clear-yet/.

"Samsung: Court refuses arrest warrant for CEO Jay Y. Lee in corruption scandal." Newsweek. N.p., 24 Jan. 2017, http://www.newsweek.com/samsung-south-korean-court-refuses-arrest-warrant-ceo-jay-y-lee-corruption-544348?scrlybrkr=b6387b7c

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Created with images by Janitors - "MWC Barcelona 2013 - Samsung" • Taken - "jail prison ruin" • valeuf - "Korean flag" • MabelAmber - "high rise skyscraper tall"

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