Samsung Group Heir Questioned In South Korea Over Controversial Merger

Jay Y. Lee, the heir to the Samsung Group and Vice Chairman of Samsung Electronics Co Ltd. SSNLF, was questioned by South Korean prosecutors. 

What Happened

The 2015 merger between the Samsung C&T, a construction firm and Chiel Industries Inc., a theme park operator, has been under scrutiny, reported Reuters.

The merger was criticized by Elliott Management, a U.S. hedge fund, as well as other investors for favoring Samsung’s family interests over the interests of shareholders. 

Why It Matters

The Samsung Electronics vice chairman is also facing a trial over bribery allegations relating to the former South Korean President Park Geun-hye, reported Reuters.

Lee was seeking support from the former president as he was preparing to take over from Samsung patriarch Lee Kun-hee.

Price Action

On Friday, Samsung OTC shares closed unchanged at $2,210 in New York. The shares traded 0.72% higher at $39.82 in Seoul on Tuesday.