Samsung Electronics vice chairman Jae-yong Lee (52), undergoing prosecution investigation with suspicion over the merger of Samsung C&T-Cheil Industries and the succession of management rights, is on the 8th again.

Vice Chairman Lee Jae-yong was present while wearing a black suit and a mask. He never responded to a reporter's question, such as "Is there really been any reports or instructions regarding illegal allegations?"

It was only two years and four months after being arrested for a one-year imprisonment after being arrested in the case of the National Agricultural Cooperative Federation in February 2017 and being released as a probation from the appeals court.

Deputy Judge Won Jung-sook of the Seoul Central District Court at the 10:30 am Seoul Court District Court at the Seoul District Court Building 321 and Vice President Choi Ji-sung (69) Former Samsung Future Strategy Officer (Vice President), Kim Jong-jung (64) Former Unstaffed Strategic Team Manager (64) Before the arrest of the president), the suspect is interrogated (warranty of the warrant) and the necessity of arrest is examined.

The arrest will be decided late on the 8th or early on the 9th.

The prosecution judged that the process leading to the merger of Samsung C&T-Cheil Industries in 2015 and the subsequent change of accounting of Samsung Biologics was carried out for the succession of the vice chairman's stable management rights, and that the process involved illegal acts such as accounting and stock manipulation.

In order to minimize the exercise of the right to buy stocks (the right of shareholders who oppose the merger to sell their stocks to the company) after the merger resolution, intensive disclosure of goodwill information was intensively made in July-August 2015, the billing period, in order to minimize the exercise. Considering the stock price as a way of buying treasury stock, the Vice Chairman and others were charged with fraudulent transactions and market manipulation under the Capital Market Law.

The prosecution also reported that the suspected accounting fraud of Cheil Industries' subsidiary Samsung Bio, which became the basis of the investigation, was also deliberately'discount accounting' and also filed a warrant for violating the external audit law.

Samsung Bio originally did not reflect the US joint venture Biogen's call option to its subsidiary Samsung Bioepis (the right to buy stocks at a predetermined price) in accounting, but with a debt of 1.8 trillion won after the merger in 2015 By changing the accounting standards, we have a profit of 4,500 trillion books.

The prosecution suspected that Samsung Bio had unfairly changed its accounting standards, fearing that if it reflected the call option, it would fall into a capital erosion state and raise the question of the appropriateness of the merger rate again.

Former president Kim Jong-jung also applied for perjury.

President Kim testified as a witness at the trial of former President Park Geun-hye in 2017, and the merger between Samsung C&T and Cheil Industries was promoted by Cheil Industries' proposal, and testified that it was not related to the succession of Vice Chairman Jae-Yong Lee.

On the 2nd, on the 4th, the Seoul Central District Prosecutors' Office for Economic Crime and Criminal Justice (Lee Bok-hyun, Lee's Vice-Chairman Lee) requested the call of the prosecutors' investigation and deliberation committee. I responded with'Precipitation' requesting a Korean arrest warrant.

(Composition: Joeul Sun, Photograph: Doowon Yang, Editorial: Heesun Kim)