The Korea Herald

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Samsung family’s stock value plunges on heir’s arrest

By Korea Herald

Published : Feb. 19, 2017 - 17:17

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Members of the founding family of South Korea’s top conglomerate Samsung Group saw the value of their shareholdings tumble last week as its heir apparent was taken into custody, data showed Sunday.

Lee Jae-yong, vice chairman of Samsung Electronics and Samsung’s de facto leader, was detained Friday on charges of bribery in connection to an influence-peddling scandal that led to President Park Geun-hye’s impeachment, becoming the first leader in Samsung’s history to be detained on criminal charges.
Lee Jae-yong (C), Samsung Group's de facto leader, leaves the office of the special prosecutor team in southern Seoul after undergoing questioning on Feb. 18, 2017. (Yonhap) Lee Jae-yong (C), Samsung Group's de facto leader, leaves the office of the special prosecutor team in southern Seoul after undergoing questioning on Feb. 18, 2017. (Yonhap)

According to the data by market tracker Chaebul.com, the value of shares held by five Samsung family members came to 26.56 trillion won ($23.1 billion) on Friday, down 279.1 billion won from the previous session.

The drop came as shares of almost all Samsung subsidiaries went south following Lee‘s arrest that has sparked concerns it could negatively affect the group’s strategic business decisions.

Lee Kun-hee, group chief and Samsung Electronics chairman, saw his stock value drop by 116 billion won to 14.53 trillion won. He has been hospitalized since May 2014 after suffering from a heart attack.

The value of the younger Lee’s shareholdings fell by 96.2 billion won to 6.61 trillion won, with his mother and two sisters also suffering setbacks.

Samsung is accused of paying 43 billion won in bribes to two foundations set up by Park’s longtime friend Choi Soon-sil in return for business favors.

According to Chaebul.com, the chiefs of two other conglomerates under investigation over their alleged involvement in the nation-rocking scandal also saw the value of their shareholdings drop sharply.

The value of shares held by SK Group head Chey Tae-won shrank by 82.3 billion won to 3.63 trillion won, with Lotte Group Chairman Shin Dong-bin seeing the worth of his shareholdings dip by 75 billion won to 1.45 trillion won. (Yonhap)