Earlier this week, Samsung Electronics Vice Chairman Lee Jae-yong was released from jail after the Seoul High Court reduced and suspended his sentence by a lower court. He was arrested on charges of bribery and corruption and was sentenced to five years in prison by a Seoul court last year. Even before the news of Lee Jae-yong’s release settled down, his father and Samsung Electronics Chairman, Lee Kun-hee, was named as a suspect in an 8.2 billion won ($7.5 million) tax evasion case by the South Korean police.
Case involves using employee bank accounts to evade taxes
The investigation dates back to the late payment of taxes in 2011 and involves the use of bank accounts held by some Samsung employees to evade taxes. During their probe, the police have unearthed accounts holding around 400 billion won ($367 million).
After suffering a heart attack in 2014, 76-year-old Lee Kun-hee has remained hospitalized at Samsung Medical Centre in Seoul. The police have not been able to question the ailing chairman due to this health condition.
“Samsung chairman Lee Kun-hee and a Samsung executive managed funds in 260 bank accounts under names of 72 executives, suspected of evading taxes worth 8.2 billion won,” the Korean National Police Agency said in a statement.
The corruption scandal that ensnared Samsung Electronics Vice Chairman Lee Jae-yong also brought down South Korea's former President Park Geun-hye last year. The new government led by the President Moon Jae-in elected after the corruption scandal promised stronger scrutiny and actions against white-collar crimes by corporate magnates.
