Trial of Samsung heir focuses on father-to-son succession

Tomas Mccoy
April 10, 2017

Revenue for the quarter likely rose 9.7 percent to 14.7 trillion won, the firm said.

For many months, Samsung (SSNLF) has been embroiled in a wave of bitter controversies ranging from corruption charges waged at senior management to the widespread Galaxy Note 7 recall. Its sales stayed almost flat at 50 trillion won ($44 billion) during the first quarter.

A few months later, its de facto heir and several top executives were charged with crimes linked to a political scandal that toppled the country's president.

Samsung, in a regulatory filing, said its January-March profit was likely 9.9 trillion won ($8.76 billion), compared with an average forecast of 9.4 trillion won from a Thomson Reuters survey of 18 analysts.

Samsung also predicted consolidated sales of about 50 trillion won for the first quarter, according to the company's Friday guidance.

The 48-year-old Lee has denied allegations from prosecutors that he bribed former president Park Geun-hye's friend to secure government backing for a 2015 merger that helped him tighten his control over Samsung.

SEOUL, South Korea (AP) - The scion of South Korea's Samsung business empire, Lee Jae-yong, appeared in court Friday to face trial for bribery and other charges. "The defendant, Jay Y. Lee, didn't even know that the contribution was made, because that's not part of his job", his lawyer, Song Wu-cheol, told the court. He could spend more than 20 years in jail if convicted on all charges, including one that he pledged 43 billion won in bribes to foundations backed by Park and her confidant, Choi Soon-sil.

Millions of South Koreans taking part in weekly street rallies demanding Park's removal have also called for the arrest of the tycoons involved in the scandal, including the leaders of Hyundai, SK and Lotte. They said Samsung's semiconductor division likely recorded profit much higher than expected, contributing more than half of the company's quarterly income as supplies of memory chips remained tight while demand from global smartphone makers was solid.

Samsung's latest flagship phone, the Galaxy S8, didn't debut until after the end of the quarter and isn't reflected in the figures. The S8 was its first major smartphone launch since the fire-prone Galaxy Note 7 fiasco.

Other reports by VideoGamingPros

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