Samsung shares drop after Lee Jae-yong’s arrest

18 February, 2017 Samsung

Bad news for Samsung keeps piling up as the electronic giant's shares just dropped by 1% at the stock market during busy hours yesterday. This was an obvious reaction to Samsung's vice-chairman Lee Jae-yong getting arrested hours earlier. He has been linked to bribery charges associated with the massive scandal involving President Park Geun-hye and her friend Choi Soon-sil. The court has found the evidence sufficient for it to allow the detention of Lee for up to 20 days, before indictment. As you can imagine, the shares falling is just one of many problems that the conglomerate will be facing, since their leader and soon to be chairman is now out of the picture.

The good news is that this fall in share value is very likely to be only a temporary setback and actually has no relation with Samsung's business in any way. It is believed to be an effect brought on by negative sentiments towards the shameful incident. The last few months have not been kind on Samsung's reputation. After the exploding Galaxy Note 7, Samsung was hoping to build back its reputation as a manufacturer. However, the leader being convicted of white collar crimes that have affected the very economy of South Korea is not going to help that cause!

Saikat Kar (tech-enthusiast)


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