South Korean police names Samsung CEO as a suspect in tax case

Lee Kun-hee, the chairman of the Samsung Group, has been named by South Korean police as a suspect in a tax evasion case. It would be an amount of more than 6 million euros.

South Korean police said in a statement that Lee Kun-hee, along with another executive, managed funds from 260 bank accounts held by 72 Samsung employees, Reuters reported. These accounts had been discovered during an investigation into alleged irregularities in payments for the renovation of a residence belonging to the Lee family.

In total, this would involve a tax arrears of 97 million euros, of which the above 6 million euros would still fall within the limited period in which the government can make a case for this. The South Korean police say they will pass the find on to the judiciary.

According to police, Lee Kun-hee could not be questioned because of his health condition; since 2014 he has been in a coma after a heart attack. Samsung declined to respond to a request for comment from Reuters.

The sick 76-year-old Lee is the father of the Monday released Lee Jae-yong. The latter is the presumed next CEO of the group. He was released a few days ago after a higher court converted a previously imposed five-year prison sentence to a suspended prison sentence. Lee Jae-yong had been in jail for almost a year. His great-grandfather founded Samsung.

Lee Jae-yong led Samsung for several years due to his father’s poor health condition. Through dubious foundations and front men, Lee Jae-yong is said to have paid a EUR 34 million bribe to former South Korean President Park Geun-hye. That would have happened in exchange for support with business deals.