The South Korean business community has been taken aback by the Seoul Central District Court’s permission to arrest Samsung Electronics Vice Chairman Lee Jae-yong.
The Korea Employers Federation(KEF) issued a statement on Friday, saying it can only express its shock and concerns over the court’s decision for the detainment of the de-facto leader of the country’s largest conglomerate.
An official of KEF noted that Samsung Electronics accounts for eleven-point-seven percent of the revenues earned by the country’s manufacturing industry and 30 percent of its operating profits.
The official added that the increased uncertainty caused by the absence of a leader at a global company that represents South Korea and the resulting decrease in international credibility will put significant pressure on the South Korean economy, which is already going through difficulties.
The official of the Korea International Trade Association(KITA) said that on top of external and internal challenges facing the South Korean economy, such as sagging exports and expanding trade protectionism, the issuance of the arrest warrant for the head of the country’s biggest company is regretful.