Samsung chief avoids arrest in South Korean corruption scandal

The bribery investigation continues, but for now Lee Jae-yong remains free.

On Thursday, South Korean judges denied a request by prosecutors to arrest Lee Jae-yong, the vice chairman of Samsung Group and acting head of the company, over accusations of bribery, embezzlement, and perjury. Lee was accused of giving multimillion-dollar bribes to Choi Soon-sil, a friend of the South Korean President, in exchange for the approval of a 2015 merger between two Samsung Group affiliates, Cheil Industries and Samsung C&T.

The judge said in a statement that the arrest of Lee was not necessary, saying "it is difficult to acknowledge the necessity and substantiality of an arrest at the current stage." Lee isn't out of the woods though, and could still face another arrest warrant as the prosecutors gather more evidence. In a statement to Reuters, a Samsung spokesperson said "We appreciate the fact that the merits of this case can now be determined without the need for detention."

The accusations against Lee are part of an ongoing corruption scandal that has reached the highest levels of the South Korean government. South Korean President Park Geun-hye has already been impeached, and she is expected to become South Korea's first elected leader to be forced from office early. Two other Samsung executives are also under investigation.

Lee's accusations are the latest in a long line of scandals surrounding Samsung. Lee Kun-hee, Lee Jae-yong's father and the semi-retired chairman of Samsung Group, was convicted of bribery in 1996 and of tax evasion and breach of trust in 2009. In 2008 he left the company after a slush-fund scandal, only to return two years later. Despite the convictions, Lee Jae-yong has never been arrested or served jail time.

Samsung makes up 23 percent of South Korea's GDP, which apparently leaves courts hesitant to prosecute Samsung executives for fear of hurting the economy.

In a statement to reporters, the main opposition Democratic party accused the court of being too lenient to Samsung, saying “The president was impeached and Choi Soon-sil was arrested ... but Samsung is still fine."