Samsung Electronics Stocks Drop Due to Sex Scandal After Seven Day Rise
Nicholas Kim, July 22, 2016, 10:11 a.m.
Samsung Electronics’ stock lost 1.75 percent to close at 1,516,000 won (US$1,335.60) on July 22 in the wake of a recent sex scandal involving the firm’s chairman Lee Kun-hee. Samsung’s share has recently been on an upward trend after crossing the 1.5 million won threshold on July 11 for the first time since 2015.
The firm’s stock price continued to rise for seven straight trading days since July 14. Some analysts painted a rosy picture, even anticipating that the price could hit an all-time high, surpassing 1,584,000 won the electronics firm set on Jan. 3, 2013.
A local news media reported on July 21 that the Samsung Electronics chairman bought sex services for years before he became bedridden in May 2014. The online news outlet alleged that some of the former top executives of Samsung Group, including Kim In, a former Samsung SDS CEO, were involved in the sex scandal.
Kim has allegedly provided a place for prostitution. Prostitution is illegal in Korea and even those who provide places for prostitution are subject to a three-year jail term or a fine of 30 million won.
Samsung Group has been blackmailed by a group of pimps and prostitutes, who demanded money in exchange for the video clips of Lee buying sex.