South Korea prosecution seeks 12 years in jail for Samsung scion

The South Korean Prosecution Monday sought a 12-year prison sentence for Samsung Group heir, Lee Jae-yong, over charges of bribery, embezzlement and concealment of foreign assets as part of the massive Rasputin scandal.

The prosecution's petition was filed during the last session of Lee's trial that began early March in Seoul's Central District Court.

Source: EFE

Samsung chief Lee arrested as South Korean corruption probe deepens

Samsung Group chief Jay Y. Lee was arrested on Friday over his alleged role in a corruption scandal rocking the highest levels of power in South Korea, dealing a fresh blow to the technology giant and standard-bearer for Asia's fourth-largest economy.

The special prosecutor's office accuses Lee of bribing a close friend of President Park Geun-hye to gain government favors related to leadership succession at the conglomerate. It said on Friday it will indict him on charges including bribery, embezzlement, hiding assets overseas and perjury.

The 48-year-old Lee, scion of the country's richest family, was taken into custody at the Seoul Detention Centre early on Friday after waiting there overnight for the decision. He was being held in a single cell with a TV and desk, a jail official said.

Lee is a suspect in an influence-peddling scandal that led parliament to impeach Park in December, a decision that if upheld by the Constitutional Court would make her the country's first democratically elected leader forced from office.

Samsung and Lee have denied wrongdoing in the case.

Prosecutors have up to 10 days to indict Lee, Samsung's third-generation leader, although they can seek an extension. After indictment, a court would be required to make its first ruling within three months.

Prosecutors plan to question Lee again on Saturday.

No decision had been made on whether Lee's arrest would be contested or whether bail would be sought, a spokeswoman for Samsung Group [SARG.UL] said.

"We will do our best to ensure that the truth is revealed in future court proceedings," the Samsung Group said in a brief statement after Lee's arrest.

The same court had rejected a request last month to arrest Lee, but prosecutors this week brought additional accusations against him.

"We acknowledge the cause and necessity of the arrest," a judge said in his ruling.

The judge rejected the prosecution's request to also arrest Samsung Electronics (005930.KS) president Park Sang-jin.

hares in Samsung Electronics ended Friday down 0.42 percent in a flat wider market .KS11.

Ratings agencies did not expect any impact on the flagship firm's credit ratings, and said Lee's arrest would accelerate improvements in management transparency and corporate governance.

SENSITIVE TIME

While Lee's detention is not expected to hamper day-to-day operations at Samsung firms, which are run by professional managers, experts said it could hinder strategic decision-making at South Korea's biggest conglomerate, or chaebol.

Samsung is going through a restructuring to clear a succession path for Lee to assume control after his father was incapacitated by a heart attack in 2014.

Decisions that could be complicated by Lee's arrest include deliberations over whether to reorganize the group under a holding company structure, as well as its plan to abandon its future strategy office, a central decision-making body that came in for criticism during the scandal.

Staff moves have also been in limbo. Samsung, which employs around half a million people, has yet to announce annual personnel promotions and changes, which it typically does in December.

One employee at Samsung Electronics’ chip division said colleagues were unsettled that prosecutors had singled out Samsung. "The mood is that people are worried," the person said.

However, another Samsung Electronics employee described the situation as business as usual. "It wouldn't make sense for a company of that size to not function properly just because the owner is away."

Both employees declined to be identified, given the sensitivity of the matter.

Lee's incarceration comes as Samsung Electronics tries to get past last year's disastrous roll-out of its Galaxy Note 7 smartphones, which were prone to fires. It is under pressure for the upcoming launch of its next flagship phone, the Galaxy S8, to be a success.

WIDER IMPACT

Major business groups criticized the decision, worried about the impact on Samsung and the country.

"A management vacuum at Samsung, a global company representing the Republic of Korea, will increase uncertainty and undermine global confidence, posing a big burden on the already struggling economy," the Korea Employers Federation said.

Lee's arrest gives a boost to prosecutors who have zeroed in on Samsung to build their case against President Park and her close friend Choi Soon-sil, who is in detention and faces charges of abuse of power and attempted fraud.

Both Park and Choi have denied wrongdoing.

Prosecutors have focused on Samsung's relationship with Park, 65, accusing the group of paying bribes totaling 43 billion won ($37.74 million) to organizations linked to Choi to secure government backing for the controversial 2015 merger of two Samsung units, a deal that was seen as key to smoothing Lee's succession.

The prosecution office on Friday accused Lee of bribery not only in seeking to smooth the merger but in the broader process of his succession. A prosecution spokesman did not elaborate.

If parliament's impeachment of Park is upheld, an election would be held in two months. In the meantime, she remains in office but stripped of her powers.

Her would-be successors praised the decision to arrest Lee.

"We hope it marks a beginning to end our society's evil practice of cozy ties between government and corporations and move towards a fair country," said Kim Kyoung-soo, a spokesman for Moon Jae-in, a member of the liberal opposition Democratic Party who is leading opinion polls in the presidential race.

Source: Reuters

At crisis-hit Samsung, nerves jangle as annual review looms

The next few weeks are traditionally a tense time at Samsung Electronics Co (005930.KS) as executives wait to see if their work over the year is rewarded with promotion at the South Korean firm's annual performance review.

This year, that tension has been ramped up several notches as the year-end ritual comes on the heels of the debacle over Samsung's flagship Galaxy Note 7 smartphone.

The world's top smartphone maker this month pulled the plug on the near-$900 device after phones overheated and caught fire. With some replacement phones suffering the same problem, Samsung has forecast a $5.4 billion hit to its operating profits. Some analysts predict the smartphone business may post a first quarterly loss for July-September.

"Everyone's afraid to be heard even breathing," said one Samsung employee. "There will be punitive measures; someone will have to take responsibility for this."

None of the Samsung employees Reuters talked to for this article wanted to be named as they were not authorized to speak to the media.

Samsung's annual personnel decisions - a common practice in South Korea around December - is a secret more closely guarded than even details of its new products. Executives are told about any changes only at the last minute.

Samsung insiders say there is more nervousness this year than normal, and talk internally of sweeping changes, with a cull both in the executive suite and on the ground level.

"There's a lot of talk there could be major turnover in the executive ranks on the hardware side," said an insider at the mobile division. "There's also a lot of concern among the working-level employees about a major restructuring."

Samsung told Reuters it was not considering any management changes or restructuring in response to the Note 7 crisis.

FRUSTRATION

The sense of frustration among Samsung staff has been heightened by the company's inability to find the cause of the fires in replacement Note 7s that began shipping last month with what Samsung said were safe batteries, insiders said.

"We are working around the clock to analyze the causes of the reported cases," Samsung said in a statement to Reuters, adding it is premature to speculate on what went wrong.

In an internal Oct. 11 email apologizing to staff, mobile chief Koh Dong-jin - who has been in the job for less than a year - wrote of the "big wound" the scrapping of the Note 7 would be for executives and employees. Samsung confirmed Koh wrote to staff, but did not comment on what he said.

Some Samsung workers said there were already rumors circulating internally about which executives might be ousted. Some investors and analysts have said top executives including Koh may be held responsible at the year-end review.

Others said they felt ashamed when people they know ditched the Note 7 for a rival product or when they heard news announcements about the phones being banned from aeroplanes.

Koh and other Samsung executives have been active on internal messaging boards, discussing with employees how to deal with the Note 7 crisis, insiders said.

About 70 percent of Samsung's more than 325,000 employees work outside South Korea. It is not clear how overseas jobs or those at subsidiaries might be affected by the Note 7 storm; Samsung said it has no plans to cut jobs this year in Vietnam, a major smartphone manufacturing base.

TAKING IT SLOW

Internally, the mobile business was criticized by some for changing product specifications without delaying launch schedules, putting staff and suppliers under pressure to deliver fast.

"Some people who work in other business divisions feel something like this was bound to happen," said a Samsung employee at the consumer electronics division, noting mounting pressure on the mobile business to overcome slowing growth amid strong competition from rivals including Apple Inc (AAPL.O) and Huawei Technologies Co Ltd [HWT.UL].

A person familiar with the development of the next Galaxy S smartphone, expected to launch early next year, said the process has now slowed as Samsung is anxious to avoid any repeat of the Note 7 problems in its future premium handsets.

"Depending on the cause (of the Note 7 problem), certain configurations may need to be altered," the person said. "So the specifics for the (next) phone have not been finalised."

Samsung is not likely to bring forward the launch of the next Galaxy S smartphone to make up for lost Note 7 sales, the person added.

Samsung told Reuters it will take "any and all necessary steps" to ensure product safety, but did not comment on whether the Note 7 fallout was affecting the next Galaxy S phone's development.

Source: Reuters

Samsung estimates $3.1 billion losses over Galaxy Note 7 withdrawal

Samsung Electronics estimates that it will lose 3.5 trillion won ($3.1 billion) in operating profits over the next six months due to the withdrawal of the Galaxy Note 7.

Samsung calculated that the impact of the sales halt will amount to 2.5 trillion won ($2.2 billion) in the fourth quarter of this year, from October to December, and around one trillion won ($880 million) for the quarter from January to March 2017, the company announced in a statement Friday.

Source: EFE

In Samsung's town in Vietnam, workers confident of riding out Note 7 storm

As Samsung Electronics (005930.KS) struggles to salvage its reputation after the safety problems that have beset its flagship Galaxy Note 7 smartphone, the South Korean company can at least bank on an army of Vietnamese workers for support.

Tens of thousands of them are involved in assembling more than a third of Samsung's smartphones - the Galaxy Note 7 included - in the Pho Yen area of Thai Nguyen province, which is about 65 km north of the Vietnamese capital Hanoi. Samsung's arrival three years ago transformed it from a sleepy farming district into a sprawling industrial town.

While the company expects to take a profit hit of around $5 billion from the scrapping of the fire-prone phone, 13 workers interviewed by Reuters outside the factory almost all said they are confident their employer will pull through. They also say Samsung pays well, offers good benefits and takes care of their needs.

"Recalling (Note 7) doesn't mean we are unemployed or such; Samsung also makes many other phones and new models, not just the Note 7," said Nguyen Thi Hang, one of some 110,000 Vietnamese who work for Samsung Electronics across Vietnam, making it one of the nation's biggest employers.

The Samsung factory workers get around $180 in monthly base salary, which can grow to around $300 when overtime, annual incentives and other benefits are included. That is well above average incomes in such rural areas.

Young workers are also drawn to the Thai Nguyen jobs by generous benefits, including subsidized or free meals, and accommodation that cost less than $3 a month. There are also organized sports, karaoke and discounts on various products and services, such as Samsung phones and hair salons.

Nguyen Van Doai, 27, a worker at the plant, said some overtime options had been reduced due to the Note 7 withdrawal, but there was no indication of job cuts.

"Samsung hasn't reached a level where they have to cut jobs because they are still hiring many people and constructing more buildings," Doai said.

Samsung Vietnam said on Wednesday there would be no job cuts this year as a result of the end of its production of the Galaxy Note 7, and its exports for 2016 would still grow as it ramps up production of other models.

SAMSUNG VILLAGE

Samsung has invested $14.5 billion in Vietnam, according to Vietnam's Association of Foreign Invested Enterprises, equivalent to 10 percent of the country's total foreign investment over the past three decades. The attractions for Samsung include relative political stability, tax breaks and lower labor costs than in China.

For those who don't live on the site, the company provides transport. Every day, thousands of Vietnamese are ferried to and from their homes in Hanoi and other cities and towns in the region in a procession of buses to the sprawling factories in Thai Nguyen and Bac Ninh provinces. In a corner of the capital on Thursday, workers queued at daybreak to board 14 of around a hundred factory-bound buses, some still emblazoned with advertisements for the Note 7.

But there are some workers and people running local businesses who are not convinced Samsung's Vietnam operations will emerge unscathed.

Dentist Phung Minh Ngoc, who moved to Thai Nguyen from Hanoi a year ago to set up a clinic named "Rang Xinh Samsung" (Pretty Tooth Samsung), fears the Note 7 fallout could hurt his business.

"Their sales will certainly fall and so jobs for workers will lessen and workers' salaries may also decrease," he said.

One female worker at the Pho Yen factory, who declined to be named, said she was worried because her contract was up for renewal next month.

"I just brought my baby here with me. If I couldn't work for Samsung any longer, I would have to go back to farming," she said.

Source: Reuters

U.S. top court to hear Apple-Samsung feud over iPhone designs

After five years of litigation, the U.S. Supreme Court will hear arguments on Tuesday in the bitter patent dispute between the world's two top smartphone manufacturers over the amount Samsung (005930.KS) should pay Apple (AAPL.O) for copying the iPhone's distinctive look.

The justices' ruling, due by the end of June, could have a long-term impact for designers and product manufacturers going forward because the Supreme Court, if it agrees with Samsung, could limit the penalties for swiping a patented design.

Samsung Electronics Co Ltd paid Apple Inc $548.2 million last December, fulfilling part of its liability stemming from a 2012 verdict for infringing Apple's iPhone patents and copying its look.

But Samsung will argue before the Supreme Court that it should not have had to make as much as $399 million of that payout for infringement of three patented designs on the iPhone's rounded-corner front face, its bezel and the colorful grid of icons that represent programs and applications.

It will be the Supreme Court's first case involving design patents in more than 120 years, when the products at issue were carpets and rugs.

Cupertino, California-based Apple sued its South Korean rival in 2011, claiming Samsung stole its technology and the iPhone's trademarked appearance.

Samsung has said it should not have had to fork over all of its profits on phones that infringed the patents, which contributed only marginally to a complex product with thousands of patented features.

Apple has said Samsung was properly penalized for ripping off its work.

With the many years of fighting behind these fierce rivals, this case has become mostly about money, said Michael Risch, a professor at Villanova University Charles Widger School of Law.

"The infringement has been affirmed, now it's whether this huge judgment should be affirmed," he said.

Risch joined a group of 50 university professors who filed a brief supporting Samsung in the case, as did Silicon Valley heavyweights Facebook Inc (FB.O) and Alphabet Inc's (GOOGL.O) Google, which makes the Android operating system used in Samsung's phones.

Apple, meanwhile, has been supported in court papers by those who emphasize the importance of design in consumer buying choices, including famous fashion names like Calvin Klein and Alexander Wang.

Last May, the U.S. Court of Appeals for the Federal Circuit in Washington upheld the 2012 patent verdict, but overturned Samsung's liability for trademark infringement. Samsung asked the Supreme Court to review the design patent part of the case.

On Tuesday, the companies will argue over a provision in U.S. patent law requiring infringers to pay a design patent owner their total profits on an infringing "article of manufacture."

Samsung said in court documents that the article of manufacture here was not its entire phone as sold, as the lower courts had ruled, and so its damages should be pared back.

If the Supreme Court does not rule in its favor, Samsung said, "an infringer of a patented cupholder design must pay its entire profits on a car."

In its court papers, Apple agreed that an article of manufacture may be a mere component of a product, but said that in this case the evidence shows that it is the entire phone as sold by Samsung.

The case is Samsung Electronics Co Ltd v. Apple Inc, in the Supreme Court of the United States, No. 15-777

Source: Reuters

Samsung to replace or refund one million U.S. Galaxy Note 7 phones

Samsung Electronics Co Ltd (005930.KS) formally recalled 1 million Galaxy Note 7 smartphones sold in the United States, replacing or refunding the flagship phones, whose susceptibility to catching fire has damaged the image of the Korean powerhouse.

Samsung received 92 reports of batteries overheating in the United States, including 26 reports of burns and 55 cases of property damage, the company said as it announced the recall in cooperation with the U.S. Consumer Product Safety Commission (CPSC).

The recall is a costly setback for Samsung, which was counting on Galaxy Note 7 to bolster sales as rivals such as Apple Inc (AAPL.O) launch new devices. The scale of the recall is unprecedented for Samsung, the world's largest smartphone maker.

Samsung said on Thursday that new Note 7 replacement devices will be available at most retail locations in the United States no later than Sept. 21.

Earlier this month, Samsung said it would recall all Note 7 smartphones equipped with batteries it found to be fire-prone and halted their sales in 10 markets, denting a revival of the firm's mobile business.

While recalls in the smartphone industry do happen, including for rival Apple Inc (AAPL.O), the nature of the problem for the Note 7 is a serious blow to Samsung's reputation, analysts have said.

The CPSC said on Thursday that consumers should immediately power down and stop using the recalled Galaxy Note 7 devices.

The U.S. Federal Aviation Administration has asked airline passengers to switch off and unplug the recalled Note 7s during flights.

Some 2.5 million of the premium devices worldwide need to be recalled, Samsung said. Some analysts say the recall could cost Samsung nearly $5 billion in lost revenue this year.

Source: Reuters

Samsung cria 'prancha tecnológica' para Gabriel Medina

Depois de um ano e meio de trabalho, a Samsung, que patrocina o WSL Championship (torneio da World Surf League) apresentou uma nova prancha de surfe, conceitual.

A prancha, tecnológica, foi batizada de Samsung Galaxy Surfboard e é um presente ao surfista brasileiro Gabriel Medina, campeão mundial em 2014.

Com a tecnologia do smartphone Galaxy S7, a prancha mostra mensagens, em tempo real, do técnico e da torcida.

Ela foi criada em parceria com o shaper de Medina, Johnny Cabianca, e a empresa Media Monks.

A tela com as mensagens aparece no deck da prancha.

A pergunta que não quer calar é: será que realmente é uma vantagem para o surfista receber mensagens em alto-mar?

A solitude do surfista na água, que lhe permite silêncio e concentração e o faz alcançar um nível de foco e até "conexão com a natureza", é bem importante para um bom desempenho.

Será que tweets de fãs não atrapalhariam? Ou seriam um incentivo, como as torcidas de futebol são para o time em campo?

Mas a prancha não mostra apenas "tweets" de fãs.

Mensagens do técnico também são transmitidas. Estas, contendo instruções relevantes.

Outras informações recebidas em tempo real também são bem interessantes, como força do vento e comportamento das ondas e da maré.

Um novo comercial, para as plataformas digitais, mostra Medina em ação com a prancha.

As imagens foram feitas no litoral paulista, onde ele treinou no fim de abril. Medina está no Brasil para a próxima etapa do campeonato, no Rio.

A criação foi da Leo Burnett Tailor Made.

Assista:

Fonte: Exame

Celulares Samsung economizarão dados no WhatsApp e Netflix

Os smartphones da Samsung ganharão um recurso que economiza internet móvel nas próximas semanas.

A iniciativa é resultado de um acordo entre a fabricante e a Opera, que vai levar a tecnologia de compressão de dados do seu app Opera Max para os aparelhos da marca. Com isso, será possível economizar em até 30% a internet móvel consumida no WhatsApp, 60% na Netflix e 50% no YouTube.

Segundo a Opera, o recurso chegará em breve para alguns modelos de smartphones da Samsung presentes no mercado por meio de uma atualização. A fabricante não informou para quais produtos a tecnologia de compressão estará disponível no Brasil. Na Índia, os smartphones da série Galaxy On (On 5 e On 7) já vêm com o app. O On7 foi lançado no mercado nacional no final do ano passado, mas não possuía o recurso de redução de consumo de internet.

O que o Opera Max faz é direcionar todo o tráfego de internet do dispositivo móvel – desde que não haja criptografia – para uma rede virtual privada, também conhecida como VPN. As solicitações de dados, então, vão para os servidores da Opera e são comprimidas para diminuir a quantidade de dados gastos pelo usuário. A empresa diz que não há um delay perceptível no uso diário.

Ligar e desligar essa tecnologia de compressão será intuitivo. O atalho para essa tarefa ficará na barra de acesso rápido do sistema Android. Ou seja, será como ligar ou desligar o Wi-Fi do seu aparelho.

Segundo levantamento da Anatel, 72,93% dos números de celular no Brasil são pré-pagos. Por conta disso, a Opera considera o país como um mercado essencial para sua estratégia de expansão e, portanto, traz agora o recurso do Opera Max nos smartphones da Samsung.

A empresa diz se orgulhar de nunca ter tido problemas com queda de servidores e afirma que não terá entraves para absorver um grande número de usuários vindos do mercado brasileiro após essa atualização chegar aos aparelhos da Samsung.

A Opera diz prezar pela privacidade dos usuários e garante não coletar dados pessoais enquanto faz a compressão que gera a economia no plano de celular.

A parceria da Opera com fabricantes é a segunda etapa da estratégia de monetização do app Max. Primeiro, a empresa buscou conquistar usuários ao longo do ano passado e, agora, parte para a monetização de seu negócio. Além da Samsung, a companhia também tem uma aliança semelhante com a Xiaomi – que ainda não tem previsão de chegar aos consumidores brasileiros.

Procurada por EXAME.com, a Samsung Brasil não comentou o caso até a conclusão da reportagem.

Quem não usa um smartphone da Samsung também pode ter acesso gratuito ao aplicativo de compressão de dados, basta baixá-lo na Google Play Store em seu dispositivo Android. Uma versão beta para iOS está em desenvolvimento.

Fonte: Exame