Court approves arrest of Samsung heir

Employees walk past a logo of Samsung Group at its headquarters in Seoul, South Korea, on Friday. (AP)
Updated 17 February 2017
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Court approves arrest of Samsung heir

SEOUL: A South Korean court approved on Friday the arrest of a billionaire heir to Samsung accused of bribery and other charges in connection to a massive corruption scandal, a stunning decline for the princeling of South Korea’s richest family.
The Seoul Central District Court’s decision to issue a warrant to arrest Lee Jae-yong, 48, a vice chairman at Samsung Electronics and the only son of Samsung chair Lee Kun-hee.
The arrest of Samsung’s de facto leader will likely shock the business community and cheer the critics of chaebol, the South Korean family-controlled business conglomerates that dominate the economy.
It was seen as a test of the country’s judicial system that in the past had been lenient toward the powerful business elite families at chaebol for their white-collar crimes, citing their contributions to the national economy.
The court said additional evidence showed there were enough reasons to take Lee into custody. Prosecutors can detain him for up to 20 days before formally indicting him.
The court dismissed prosecutors’ request to arrest Park Sang-jin, a president at Samsung Electronics overseeing external relations, saying that it was difficult to justify Park’s arrest given his position and role within the company.
Lee was waiting for the decision at a detention center near Seoul overnight after a closed-door court hearing that lasted more than seven hours on Thursday. He was taken into custody while Park was released. Local media reported that Lee was sent to solitary confinement. The detention center declined to comment, saying it cannot give out private details.
Samsung said it will continue to defend itself in court.
“We will do our best to ensure that the truth is revealed in future court proceedings,” it said in a statement.
Lee avoided arrest last month when the court said prosecutors did not have enough evidence. The special prosecution team, probing the influence-peddling scandal that led to the impeachment of the country’s president, said they had gathered more evidence to strengthen their case and made a second request.
Prosecutors accused Lee of giving bribes worth $36 million to President Park Geun-hye and her close friend Choi Soon-sil to win government favors for a smooth company leadership transition. They are also investigating Lee on allegations of embezzlement of Samsung funds, hiding assets overseas and lying under oath during a parliamentary hearing.
The court decision could also help the prosecution team bring bribery charges against President Park Geun-hye whose powers were suspended in December by Parliament.
The special prosecution office is also reportedly looking into whether the value of Samsung Biologics, which went public last year, was overpriced to benefit the Samsung founding family and also whether the fair trade commission gave any favors to Samsung in relation to its complex cross shareholding structure, which allows the Lee family to control the sprawling businesses with only a minority stake.


Meet the Dubai ad men who pay you to sit in traffic

Updated 20 August 2018
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Meet the Dubai ad men who pay you to sit in traffic

  • Blockchain technology challenges traditional outdoor media
  • Adverts connect to driver mobile phone

LONDON: A new startup founded by UAE-based entrepreneurs is in the process of test-running a blockchain-based technology that could help people turn their cars into mobile advertising vehicles.
It could challenge the use of traditional advertising methods such as outdoor billboards, the founders of The Elo Network claim.
The platform — which has been set up by Mohammed Khammas and Mohammed Bafaqih and incorporated in the Cayman Islands — will enable people to be paid for displaying adverts on the side or back of their vehicles while they go about their daily routines of driving to work, the mall or doing the school run.
The adverts will feature low-frequency bluetooth ‘beacons’ that connect to the drivers' mobile phone which will be able to monitor when the driver is in the car and where the car is being driven.
There is a minimum threshold for the number of miles being driven a day, but the main prerequisite is that the driver is in the car. Drivers will still be paid even if stuck in a traffic jam.
Advertising clients will be able to put out requests that drivers head to a particular area — for instance to be close to a new brand launch — with drivers being paid up to 4 or 5 times more than their standard rate if they accept.
While the concept of paying people to use their cars for advertising is not new, it is the use of blockchain technology that will make The Elo Network particularly grounding-breaking in the advertising world, its founders said.
“Billboards are very expensive and static and don’t give you the KPIs and insightful information that brands want these days. You solve that by getting them that data,” Bafaqih said.
The Elo Network collates detailed data by tracking the movements of the drivers and their day-to-day activities. Data points such as a particular area’s population density can been collected.
The information will be encrypted ensuring that the brand will never know the identity of the driver, said Bafaqih.
“It creates data sets that didn’t exist before. You don’t have to worry about privacy but at the same time the brand can know about your patterns. They can know where you go in mornings, where you drive, what normal patterns are created in certain areas and countries,” he said.
This level of detail is increasingly important for brands looking to run targeted campaigns, and it is something that traditional billboards are unable to offer.
The technology will also be used to overcome the payment problems that other similar car advertising schemes have faced.
“Historically what happens, where there is a authority that is issuing payments, it causes a lot of problems. There can be disputes on how much they (the drivers) are owed or how many miles were driven or what campaign someone has done,” he said.
Under the Elo Network program, the blockchain technology allows you to create so-called “Smart Contracts” — which is a software protocol that enforces and verifies the performance of a contract.
“It says driver A is going to be paid — for example — a dollar per mile — so as the person drives he starts receives ‘IOUs’. Those IOUs are convertible at any time,” he said.
With no ‘middle man’ involved, the driver is able to redeem their IOUs and get paid as and when they want.
The network is currently at ‘proof of concept’ stage and is test-running the platform with a number of brands. It is anticipated that the network will be rolled out to the public toward the end of this year and early 2019.