A South
Korean court on Friday ordered the arrest of Jay Y. Lee , He is third generation
leader of South Korea Samsung Group country's wealthiest family. His new home is now a 71 square foot detention
cell with a toilet in the corner behind a partition. He was 48-year-old head of the Samsung Group, on
suspicion of bribery and other charges in a corruption scandal that led
parliament to impeach President Park Geun-hye.
Prosecutors
accuse Lee in his capacity as head of South Korea's largest multinational company
having net worth of 43 billion won ($37.74 million) to a business and
organizations backed by Park's friend, Choi Soon-sil, in exchange for support
of a 2015 merger of two Samsung companies.
Samsung and
Lee have denied wrongdoing in the case. Park, whose impeachment will be upheld
or overturned by the Constitutional Court, has also denied wrongdoing.
Samsung
watchers have said Lee's arrest would not affect the day-to-day running of
group companies including Samsung Electronics, which are run by professional
managers, but a prolonged absence could impact longer-term and strategic
decision making.
Lee's arrest
is likely to put greater public focus on three key executives at the sprawling
conglomerate.
Choi, 66,
heads Samsung's group strategy office, dubbed the "control tower."
Known to be Jay Y. Lee's mentor, Choi had been expected by group insiders to
take charge of the conglomerate in the event of Lee's absence.
With more
than three decades at Samsung, Choi has been deeply involved in preparing a
plan for Jay Y. Lee to assume control of the group from his father, who was
incapacitated by a 2014 heart attack.
Previously
CEO of Samsung, Choi created the role of chief operating officer in 2010, and
appointed Jay Y. Lee to that post. Even after issuing an official apology for
its exploding cellphones
The 64-year-old Kwon, who
succeeded Choi as Samsung Electronics CEO in 2012, mainly oversees Samsung's
cash-cow components business, which includes the world's biggest maker of
memory chips, a key driver of revenue and profits.
Known as
"Mr. Chip," the low-profile Kwon may find himself with a larger role
as he guides Samsung through the aftermath of last year's crisis over exploding
Galaxy Note 7 smartphones.
The Sister Lee Boo-jin, CEO, Hotel Shilla Co Ltd:
The elder of
Jay Y. Lee's two younger sisters, 46-year-old Lee Boo-jin heads Samsung's Hotel
Shilla arm, which is among the world's largest duty-free retailers. Shares in
the company rallied earlier this week on market speculation that she would take
a bigger role in the group if her brother was arrested.
Some group
watchers dismissed that likelihood, noting that Lee Boo-jin does not have
experience at the flagship Samsung or hold a significant stake in the company. It
is extremely rare in South Korea for a woman to assume control of a family
conglomerate.
Now Jay Y.
Lee
has no shower, only a wash-stand. Bed is a mattress on the floor. He
will stay in single cell and will not be allowed to getting in contact with
other inmates.
Lee has divorced his wife and is having two children. Net
worth of Lee is $6.2 billion and ordinarily lives in a $4 million Seoul
mansion.
An
accomplished Lee is also a lifetime member of the Royal and Ancient Golf Club
of St. Andrews in Scotland.
At the
detention centre Lee will be allowed visitors but they can speak only through a
glass partition, for up to 30 minutes at a time. However, inmates are allowed
unlimited meeting time with their lawyers. He can exercise, but on his own, for
30 minutes a day
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