<p>The heir to the Samsung empire returns to court this week for a retrial over a sprawling corruption scandal that could see him return to prison and deprive the world's largest smartphone and chip manufacturer of its top decision-maker.</p>.<p>Lee Jae-yong is vice chairman of Samsung Electronics -- where profits have been falling for months -- and was jailed for five years in 2017 for bribery, embezzlement and other offences in connection with the scandal that brought down South Korean President Park Geun-hye.</p>.<p>The 51-year-old was freed a year later after an appeals court dismissed most of his bribery convictions, but that decision was set aside by the Supreme Court in August, which ordered a retrial.</p>.<p>The new proceedings begin Friday and are likely to last for months.</p>.<p>At the same time, Samsung Electronics is battling challenges from the US-China trade war and tough export restrictions imposed by Tokyo on key supplies amid a dispute with Seoul over wartime history.</p>.<p>While the firm's daily business is managed by a board of directors, a leadership vacuum would greatly hamper its ability to make major decisions, KB Securities said in a report.</p>.<p>The retrial added to uncertainty for the company, said a source with direct knowledge, adding: "There are things that only Lee Jae-yong can do."</p>.<p>Samsung Electronics is the flagship subsidiary of the Samsung group, by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the world's 11th-largest economy.</p>.<p>Its overall turnover is equivalent to a fifth of the national gross domestic product and it is crucial to South Korea's economic health. "It's a huge burden for Samsung Electronics and will have negative ripple effects on the Korean economy," said Kim Dae-jong, a business professor at Sejong University.</p>.<p>The phone maker has flagged a profit drop of more than 50 per cent in the third quarter -- its fourth consecutive earnings fall -- faced with a long-running slump in the global chip market.</p>.<p>It has also had to contend with glitches with its top smartphones, delaying the release of the Galaxy Fold and warning users of other devices about a fingerprint identification vulnerability.</p>.<p> The trials of Lee and Park highlighted shady links between big business and politics in South Korea, with the ousted president and her close friend, Choi Soon-sil, accused of taking bribes from corporate bigwigs in exchange for preferential treatment.</p>.<p>Lee's case centred on millions of dollars his group paid Choi, allegedly for government favours such as ensuring a smooth transition for him to succeed his ailing father.</p>.<p>He has effectively been at the helm of the sprawling Samsung group since his father and group chairman Lee Kun-hee was left bedridden by a heart attack in 2014.</p>.<p>In July he flew to Japan in a high-profile trip to secure chip materials following Tokyo's restrictions, and this month he announced a plan to invest more than 13 trillion won (USD 11 billion) in developing next-generation displays.</p>.<p>South Korean President Moon Jae-in stood next to Lee as he made the announcement at a Samsung plant in Asan, south of Seoul -- their ninth official meeting since the Samsung heir was freed. </p>
<p>The heir to the Samsung empire returns to court this week for a retrial over a sprawling corruption scandal that could see him return to prison and deprive the world's largest smartphone and chip manufacturer of its top decision-maker.</p>.<p>Lee Jae-yong is vice chairman of Samsung Electronics -- where profits have been falling for months -- and was jailed for five years in 2017 for bribery, embezzlement and other offences in connection with the scandal that brought down South Korean President Park Geun-hye.</p>.<p>The 51-year-old was freed a year later after an appeals court dismissed most of his bribery convictions, but that decision was set aside by the Supreme Court in August, which ordered a retrial.</p>.<p>The new proceedings begin Friday and are likely to last for months.</p>.<p>At the same time, Samsung Electronics is battling challenges from the US-China trade war and tough export restrictions imposed by Tokyo on key supplies amid a dispute with Seoul over wartime history.</p>.<p>While the firm's daily business is managed by a board of directors, a leadership vacuum would greatly hamper its ability to make major decisions, KB Securities said in a report.</p>.<p>The retrial added to uncertainty for the company, said a source with direct knowledge, adding: "There are things that only Lee Jae-yong can do."</p>.<p>Samsung Electronics is the flagship subsidiary of the Samsung group, by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the world's 11th-largest economy.</p>.<p>Its overall turnover is equivalent to a fifth of the national gross domestic product and it is crucial to South Korea's economic health. "It's a huge burden for Samsung Electronics and will have negative ripple effects on the Korean economy," said Kim Dae-jong, a business professor at Sejong University.</p>.<p>The phone maker has flagged a profit drop of more than 50 per cent in the third quarter -- its fourth consecutive earnings fall -- faced with a long-running slump in the global chip market.</p>.<p>It has also had to contend with glitches with its top smartphones, delaying the release of the Galaxy Fold and warning users of other devices about a fingerprint identification vulnerability.</p>.<p> The trials of Lee and Park highlighted shady links between big business and politics in South Korea, with the ousted president and her close friend, Choi Soon-sil, accused of taking bribes from corporate bigwigs in exchange for preferential treatment.</p>.<p>Lee's case centred on millions of dollars his group paid Choi, allegedly for government favours such as ensuring a smooth transition for him to succeed his ailing father.</p>.<p>He has effectively been at the helm of the sprawling Samsung group since his father and group chairman Lee Kun-hee was left bedridden by a heart attack in 2014.</p>.<p>In July he flew to Japan in a high-profile trip to secure chip materials following Tokyo's restrictions, and this month he announced a plan to invest more than 13 trillion won (USD 11 billion) in developing next-generation displays.</p>.<p>South Korean President Moon Jae-in stood next to Lee as he made the announcement at a Samsung plant in Asan, south of Seoul -- their ninth official meeting since the Samsung heir was freed. </p>