( News Focus ) Bumpy road lies ahead for Samsung , even after heir avoids detentionBy Joo Kyung - don SEOUL , June 9 ( Yonhap ) -- Samsung Group on Tuesday breathed a sigh of relief as its de facto leader Lee Jae - yong avoided arrest over an investigation into a controversial merger between two group units a few years ago , but South Korea ' s largest conglomerate still faces the challenges of Lee ' s drawn - out legal battle and uncertainties caused by the coronavirus pandemic . A Seoul court rejected an arrest warrant for Samsung Electronics Vice Chairman Lee , which the prosecutors had requested for his alleged involvement in the combination of the two Samsung affiliates -- Samsung C & T Corp . and Cheil Industries Inc . -- in 2015 and fraudulent accounting of a pharmaceutical unit . Prosecutors suspect that Lee and the group ' s top management were involved in a calibrated scheme to intentionally lower the value of Samsung C & T prior to its merger with Cheil Industries so as to facilitate Lee ' s managerial succession from his ailing father , Lee Kun - hee . Samsung Electronics Vice Chairman Lee Jae - yong arrives at the Seoul Central District Court in Seoul on June 9 , 2020 , to attend a review on his arrest warrant . The prosecution seeks Lee ' s warrant over a controversial merger of two Samsung units in 2015 . ( Yonhap ) Samsung has been strongly denying such allegations , saying Lee was not involved in any decision - making process regarding the 2015 merger , and there was no stock price manipulation or unfair trading . Even though Samsung avoided its worst - case scenario , the group is still on a full - alert mode as a legal battle over the charge against the heir apparent is not over . There are possibilities of prosecutors seeking the arrest warrant again after collecting more evidence . Prosecutors could also indict Lee without detention and try to convict him through trials . Industry observers said although Lee avoided arrest , Samsung ' s strategic business decisions may be put on hold since the group now has to focus more on saving the heir apparent from a series of trials . Lee is still dealing with a bribery case that put him behind bars a couple years ago . Lee was imprisoned for about a year in 2017 for bribing a confidant of former President Park Geun - hye in return for her administration ' s support for the 2015 merger . He was released in February 2018 after his sentence was suspended by an appeals court , but the Supreme Court last year ordered a retrial . " If the leader ( Lee ) is absent due to investigations or trials , it will be difficult to manage the firm normally , " said Choi June - sun , a professor at Sungkyunkwan University ' s Law School in Seoul . Samsung ' s increased concerns over a possible leadership vacuum comes amid its efforts to overcome uncertainties caused by the novel coronavirus pandemic and renewed trade tensions between the United States and China . This photo taken June 7 , 2020 , shows a corporate flag of Samsung Group hoisted at an office building of Samsung Electronics Co . in Seoul . ( Yonhap ) The group ' s crown jewel , Samsung Electronics Co . , saw its sales rise 5 . 61 percent on - year to 55 . 3 trillion won ( US $ 45 . 9 billion ) in the first quarter of the year , while its operating income increased 3 . 43 percent on - year to 6 . 4 trillion won in the January - March period . However , compared with the company ' s heyday in 2018 , when it racked up an operating income of at least 10 trillion won in a quarter , its performance was mediocre . The world ' s memory chip and smartphone maker also warned of a tepid performance under the current quarter as the pandemic is expected to drag down its mobile business . As a group , Samsung has been eager to improve its earnings . The 12 listed subsidiaries of Samsung Group chalked up 16 . 2 trillion won in combined operating income last year , down a whopping 65 percent from a year ago . Lee has been active in spearheading the tech centered - empire ' s businesses strategy with massive investment plans since he got out of jail in 2018 , but recent legal risks may limit his moves . In August 2018 , just six months after he got out of jail , Samsung announced a 180 trillion - won investment for the next three years , with 130 trillion won to be used in South Korea and vowed to create 40 , 000 jobs . In recent years , Samsung Electronics is trying to expand its presence beyond the memory chip sector . Last April , the company announced a vision that aims to become the world ' s No . 1 logic chip maker by 2030 by investing 133 trillion won to bolster its competitiveness in the system LSI and foundry businesses . In addition to the chip making business , Samsung last year vowed to invest 13 . 1 trillion won through 2025 to develop its next - generation displays , known as quantum - dot displays . Samsung Electronics Vice Chairman Lee Jae - yong bows at his press conference in Seoul on May 6 , 2020 , before announcing his apology statement over his succession and labor union issues . ( Yonhap ) Despite the pandemic , Lee has been busy visiting Samsung ' s production sites around the globe , including its chip plant in Xian , China , in recent months to inspect their business plans . Hoping for a positive public response ahead of the heir ' s trials , there is a possibility that Samsung may further push its compliance drive and show that it is making progress in pursing law - abiding management with Lee . In his rare public apology last month , Lee apologized over controversies surrounding his succession issues and vowed not to pass on the managerial power to his children . He also promised to scrap the group ' s " no labor union " policy and actively speak with civil society for enhancing compliance culture . Samsung in February launched an independent compliance committee to monitor its compliance actions . The committee recently urged the conglomerate to come up with detailed action plans backing Lee ' s compliance pledge . kdon @ yna . co . kr ( END )