Seoul - A South Korean court on Thursday
dismissed an arrest warrant against the head of Samsung Group, the country's largest conglomerate, amid a graft
scandal that has led to the impeachment of President Park
Geun-hye.
But the reprieve for Jay Y. Lee, 48, may only be temporary,
as the special prosecutor's office said it would pursue the
case.
Lee, who has led Samsung since his father, Lee Kun-hee,
suffered a heart attack in 2014, was still likely to face the
same charges of bribery, embezzlement and perjury, legal
analysts said, even if he is not detained.
Lee left the Seoul Detention Centre carrying a white
shopping bag and climbed into a car without talking to
reporters, having been held overnight as the court deliberated
whether to grant the arrest warrant.
The special prosecutor's office said it would be continuing
its probe but had not decided whether to make another arrest
warrant request, and the setback would not change its plans to
investigate other conglomerates.
Spokesman Lee Kyu-chul said the prosecution was unconvinced
by the Samsung chief's argument that he was a victim of coercion
due to pressure from Park.
The spokesman also said Samsung Group Vice Chairman Choi
Gee-sung had been classified as a suspect on suspicion of
bribery, but did not elaborate further. Two other Samsung
officials, Choi's deputy Chang Choong-ki and Samsung Electronics
executive Park Sang-jin, were also under investigation.
The office has accused Lee of paying multi-million dollar
bribes to Park's confidant, Choi Soon-sil, the woman at the
heart of the scandal, to win support from the National Pension
Service for a controversial 2015 merger of two Samsung Group
affiliates.
The merger helped cement Lee's control over the
smartphones-to-biopharmaceuticals business empire. He has denied
wrongdoing.
Read also: Samsung's succession in disarray
The judge said in a statement on his ruling that an arrest
was not necessary - for now.
"After reviewing the contents and the process of the
investigation so far ... it is difficult to acknowledge the
necessity and substantiality of an arrest at the current stage,"
he said.
Lee Jung-jae, a lawyer and former prosecutor, said he didn't
think the special prosecutor would push for Lee's detention
again.
"They probably already have as much evidence as they could
gather," he told Reuters. "They will indict him eventually, but
without detention."
Samsung said in an emailed statement that it appreciated
"the fact that the merits of this case can now be determined
without the need for detention".
The group's flagship, Samsung Electronics, is
the world's biggest maker of smartphones, flat-screen
televisions and memory chips.
Stripped of power
Making its case for an arrest warrant on Monday, the special
prosecutor's office accused Lee of paying bribes totalling 43
billion won ($36.70 million) to organisations linked to Choi to
secure the 2015 merger of Samsung C&T and Cheil Industries.
Park, 64, was impeached last month by parliament over the
influence-peddling scandal. If the decision is upheld by the
Constitutional Court, she will become South Korea's first
democratically elected leader to be forced from office early.
Both Park, who remains in office but stripped of her powers
while the court decides her fate, and Choi have denied
wrongdoing.
The special prosecutor's office said on Tuesday it had
evidence that Park and Choi shared profits gained through
bribery payments, but did not elaborate.
Read also: Samsung chief questioned behind closed doors
This week, the special prosecutor indicted the chairman of
the National Pension Service, the world's third-largest pension
fund, on charges of abuse of power and giving false testimony in
relation to the deal.
Thursday's court ruling angered many, including members of
the left-wing opposition Democratic Party, which said the
decision ran counter to public sentiment. Samsung and its leader
have been dogged by protests in recent weeks as the graft probe
advanced, with some calling for Lee's immediate arrest.
"The law is not equal for all," one South Korean remarked on
web portal Naver.
Key Samsung Group shares rose following the court decision:
Samsung Electronics and Samsung C&T gained 1.5 percent and 0.8
percent, respectively, outperforming a 0.1 percent gain for the
broader market though down from their opening peaks as
investors braced for the likelihood of an indictment.
"The only thing that has changed is that he won't be
detained now," commented Park Jung-hoon, a fund manager at HDC
Asset Management, adding that uncertainties were likely to
linger.