SEOUL: Samsung Electronics’ ailing chairman, Lee Kun-hee, has been named by South Korean police as a suspect in an 8.2 billion won ($7.5 million) tax evasion case that involved the use of bank accounts held by employees.
A series of scandals has dogged the family of Samsung, the country’s biggest business empire.
The chairman’s son, Jay Y. Lee, heir to the Samsung Group, was released from detention earlier this week after an appeals court halved his sentence for bribery and corruption to two-and-half years and suspended it for four years.
Following a heart attack in 2014, the elder Lee, 76, has remained hospitalized in Seoul’s Samsung Medical Center and is difficult to commuicate with having shown little sign of recovery. Until his imprisonment Jay Y. Lee had been regarded as the de facto head of the group.
Police said the elder Lee could not be questioned due to his physical condition and Samsung declined comment.
“Samsung chairman Lee Kun-hee and a Samsung executive managed funds in 260 bank accounts under names of 72 executives, suspected of evading taxes worth 8.2 billion won,” the Korean National Police Agency said announcing plans to send the case to prosecutors.
Police added that the accounts, holding about 400 billion won, were found in the course of their probe into alleged improper payments for the renovation of Lee’s family residence.
The investigation into tax evasion harks back to the late payment of 130 billion won in tax in 2011, though only 8.2 billion of that sum falls within the statute of limitations, according to police.
The corruption case that led to the younger Lee’s arrest last year and brought down the former president Park Geun-hye prompted Samsung to vow to improve transparency in corporate governance and grant heads of the group’s affiliates more autonomy from the Lee family.
The group dismantled its corporate strategy office in late 2017.
The new liberal government led by President Moon Jae-in elected after the corruption scandal promised to put family-run conglomerates under stronger scrutiny and end the practice of pardoning corporate tycoons convicted of white-collar crimes.
Jay Y. Lee has not been seen back at the office since his release on Feb. 5, but members of the Korean business community expect him to take up the reins once again, and invest more in the business to create jobs that might help soothe public anger.
Returning home from prison, the younger Lee apologized for not showing his best side and said he would do what he could, but did not give specifics on his business plans.
While he spent a year behind bars, Samsung Electronics, the world’s top semiconductors maker, earned record profit as it benefited from a memory chip “super cycle.”
It is not the first time the elder Lee has been investigated for tax evasion. He was convicted in 2009 and later pardoned for the same offense after being embroiled in a scandal that also involved the use of accounts held by trusted employees.
Police say they have since identified more such accounts.
Shares in Samsung Electronics rose 1.1 percent compared with a 0.5 percent rise in the wider market. Blue chip tech stocks bounced after recent falls as investors saw current valuations as attractive, analysts said.
Samsung’s beleaguered chairman named as suspect in $7.5m tax evasion case
Samsung’s beleaguered chairman named as suspect in $7.5m tax evasion case
UN chief says 37,000 West Bank Palestinians displaced in 2025; warns Gaza war threatens two-state solution
- ‘We enter 2026 with the clock ticking louder than ever. Will the year ahead bend towards peace or slip into the abyss of despair?” asks Secretary-General Antonio Guterres
- Illegal settlement expansions, demolitions, displacements and evictions in the West Bank are accelerating, he says
NEW YORK CITY: More than 37,000 Palestinians were displaced in the occupied West Bank during 2025, a year in which there were also record-high levels of violence committed by Israeli settlers, UN secretary-General Antonio Guterres said on Tuesday.
The situation on the ground was rapidly eroding the prospects for a two-state solution, he warned.
“We enter 2026 with the clock ticking louder than ever,” Guterres told the opening session of the UN Committee on the Exercise of the Inalienable Rights of the Palestinian People.
“Will the year ahead bend towards peace or slip into the abyss of despair?”
Illegal settlement expansions, demolitions, displacements and evictions in the West Bank were accelerating, said Guterres, who described the Israeli actions as destabilizing in nature and unlawful under international law.
“The recently published tender by Israel for 3,401 housing units in the E1 area (of the West Bank), alongside continued demolitions, is profoundly alarming,” he added.
“If carried forward, it would sever the northern and southern West Bank, undermine territorial contiguity, and strike a severe blow to the viability of a two-state solution.”
Turning to the situation in Gaza, Guterres said Palestinians there continued to endure “grave suffering.” More than 500 have been killed since the truce between Israel and Hamas in October, he noted.
“I urge all parties to implement the (ceasefire) agreement in full, exercise maximum restraint, and comply with international law and UN resolutions,” he said.
He called for the rapid and unimpeded delivery of humanitarian aid at scale, including through the Rafah border crossing between Gaza and Egypt, which Israel reopened on Monday.
Guterres criticized Israeli authorities for the continued suspension of international non-governmental organizations that provide aid, which he said “defies humanitarian principles, undermines fragile progress, and worsens the suffering of civilians.”
Regarding the future of Gaza, he said any sustainable solution must include governance of the territory and the West Bank, including East Jerusalem, by a unified and internationally recognized Palestinian government.
“Gaza is and must remain an integral part of a Palestinian state,” Guterres added.
He also reaffirmed his support for the UN Relief and Works Agency for Palestine Refugees, and condemned recent Israeli legislation and other actions he said impeded the ability of the agency to operate, including moves to demolish its Sheikh Jarrah compound in occupied East Jerusalem.
“Let me be clear: UNRWA premises are United Nations premises,” he said. “They are inviolable and immune from any form of interference.”
Guterres described public threats against UNRWA staff as “utterly abhorrent,” and said Israel was obliged under international law to respect the privileges and immunities of the UN.
He also reiterated that an end to Israeli occupation of Palestinian territory was essential.
“There is only one viable route (to peace): the two-state solution, in line with international law and relevant United Nations resolutions,” he said, as he called on the international community to act “with clarity, unity and determination” on the issue.
