Samsung heir loses board seat at Fiat Chrysler
Samsung Electronics vice chairman and the conglomerate’s heir apparent has had a tough few months. He has been behind bars due to his alleged role in South Korea’s corruption scandal that has already toppled the presidency. The scandal appears to be having an impact on Lee Jae-yong’s standing in the global business community as well.
Lee Jae-yong is currently facing trial on charges of bribery, embezzlement, corruption, concealment of assets abroad and more. If convicted on all charges he may be looking at a prison sentence of over 20 years.
Lee Jae-yong was appointed to Exor’s board in 2012. Exor is Fiat Chrysler’s holding company. His tenure was renewed for three years in 2015. Lee was unable to attend the company’s board meeting in November last year because he was banned from leaving South Korea as special prosecutors looked into his possible involvement in the scandal.
Exor reportedly decided at a board meeting earlier this month that it was going to replace four independent directors that Lee Jae-yong happens to be one of them. Exor Chairman John Elkann thanked all four outgoing members for their “wise counsel during a particularly intensive and complex period.”
Whether or not this is going to have any impact on Samsung’s decision to acquire Magneti Marelli remains to be seen. Magneti Marelli is an auto parts giant owned by Fiat Chrysler which is controlled by Exor. Recent reports suggest that Samsung is looking to complete its acquisition of Magneti Marelli by the end of this year.