Samsung Responds

[Anchor Lead]

Samsung Group was rocked by the prosecutors' decision to seek an arrest warrant for the its heir apparent, strongly rebutting the announcement. Other major Korean conglomerates also under investigation have been put on notice. Here’s more.

[Pkg]

Shocked by the special prosecutors' aggressive move, the Samsung Group made a brief announcement of its stance an hour later. Samsung said that it had never provided funds in return for any favors, and called the special prosecutors' decision "difficult to understand."

[Soundbite] Samsung Group Official : "We did not commit the irregularities in the succession of management rights or business mergers, as the prosecutors claim. We believe that the court will make the right decision."

It's the first instance of an arrest warrant being sought for a head of the Samsung Group in the company's history. Samsung is reportedly considering how to run the group with an emergency regime should Lee be arrested. The business community says that if Lee is arrested, Samsung's Future Strategy Office, which Samsung had promised to shut down, will have no other choice but to remain for the time being. With the special prosecutors having concluded that the funds provided to the Mi-R and K-Sports foundations were bribes, other conglomerates such as SK, CJ and Lotte are on high alert, as they may hit snags in obtaining amnesty for their imprisoned executives or opening duty-free shops.

[Soundbite] Conglomerate Official(Voice modified) : "The prosecutors should have sufficiently considered not only the legal aspect but the economic aspect as well."

Overseas media extensively covered the special prosecutors' decision to request an arrest warrant for the Samsung heir apparent, and Samsung's shares dropped 2.14 percent.