Samsung Chief Denies Bribery Charges in ‘Trial of the Century’

The trial of Lee Jae-yong, who is vice chairman of Samsung Electronics Co. and de facto leader of the company, began today. He, along with four other Samsung executives, formally denied bribery charges in the preliminary hearing for what is being billed South Korea’s “trial of the century.”

Lee, who was widely expected to take his father’s place at the helm South Korea’s largest conglomerate, is among the most high-profile people to have been swept up in the massive corruption scandal that has already led to the impeachment of South Korean president Park Geun-Hye. She has denied wrongdoing and refused to answer questions about her connections to Lee. If her impeachment is upheld by the constitutional court, Park will be thrown out of office and lose her immunity from prosecution.

Lee has been accused of funneling $36 million in bribes to Choi Soon-sil, a close confidante of Park, along with a host of other crimes including embezzlement and perjury. Prosecutors say he arranged the payments and gifts, including a horse for Choi’s equestrian daughter, in exchange for approval of a controversial 2015 merger that helped his family secure control of the sprawling conglomerate. Samsung admitted to making the payments to two organizations connected to Choi, but denied that they were part of a political quid pro quo.

“Samsung has not paid bribes nor made improper requests seeking favors. Future court proceedings will reveal the truth,” the company said in a public statement.

If convicted, Lee faces five years to life in prison, Bloomberg reports, though he has two other avenues of appeal available to him under South Korea’s judicial system in such an eventuality. Whether or not he ends up serving jail time is significant concern in South Korea, where business tycoons tend to get away from wrongdoing with light slaps on the wrist.

Lee’s trial, which is expected to last for three months, is another major blow to Samsung’s reputation, which has plummeted drastically since last year’s botched rollout of the exploding Galaxy Note 7. Though some major decisions may be delayed, the company itself is expected to carry on its operations largely unaffected. Samsung shares have actually soared 11.5% this year, after it managed to post the best operating profit in three years despite the Note 7 debacle.

Samsung’s Galaxy S8 flagship is due to launch in just a few short weeks, with plans to release the Note 8 as a follow-up later this year. The company, which is a key part of Apple’s global supply chain, has also reportedly inked a $4.3 billion deal with Apple to supply 60 million OLED screens for the next iPhone.