Samsung Head Indicted for Tax Fraud

Electronics giant vows reform as chairman faces trial
By Jason Farago,  Newser Staff
Posted Apr 17, 2008 6:43 AM CDT
A South Korean woman walks past in front of Samsung's logo at downtown Seoul, South Korea, Thursday, April 17, 2008.   (AP Photo)
camera-icon View 2 more images

(Newser) – The chairman of electronic giant Samsung will stand trial for tax evasion and breach of duty after special prosecutors alleged corruption in South Korea's largest industrial corporation. Lee Kun-hee was indicted in Seoul today for evading $114 million in taxes and for incurring losses at Samsung while installing his son in leadership positions, Bloomberg reports. Nine other execs at Samsung were also charged with crimes.

Lee, the paterfamilias of South Korea's richest family, has had brushes with the law before: in 1996 he was convicted of bribing two Korean presidents, for which he received a suspended sentence and later a pardon. Samsung, which accounts for 20% of South Korea's exports, has vowed to reorganize its management in the face of the scandal.