18 Jan 2021 / 16:03 H. Lee needs to serve 18 months, after serving a year in 2017-2018 Ruling signals no more leniency to S.Korean business leaders Long-term strategic decisions could be affected-analysts Samsung affiliates shares fall sharply (Writes through, adds analyst, business lobby comments)
By Joyce Lee
SEOUL, Jan 18 (Reuters) - A South Korean court sentenced Samsung Electronics vice chairman Jay Y. Lee to two and a half years in prison on Monday, which could delay the group s ownership restructuring following the death of Lee s father in October.
The ruling also cements a major shift in South Korea s view on wrongdoings committed by the owners of the country s powerful conglomerates, or chaebol, which led the country s economic rise after the Korean War on the back of what has been criticised as cozy relations with politicians.
Days after Launching new Galaxy Smartphones, Samsung s Leader is Sentenced to 2.5 Years in Prison for Bribery
Last week Samsung was flying high with the introduction of new Galaxy smartphones and today, Samsung has been struck by the news that their leader, Lee Jae-yong, has been handed another 2.5 year jail sentence for Bribery.
The country s largest conglomerate has hit a major setback after an appellate court handed a prison sentence of two-and-a-half years to Samsung Electronics Vice Chairman Lee Jae-yong in a re-hearing of a major bribery case, Monday.
The court ruling puts the tech giant back into a leadership vacuum hampering major investment decisions in new businesses, which many expect will hurt the company s global competitive edge.
Samsung head gets 2.5 years for corruption scandal
AFP, SEOUL
The
de facto chief of South Korea’s Samsung business empire was yesterday convicted over a huge corruption scandal and jailed for two-and-a-half years, in a ruling that deprives the tech giant of its top decisionmaker.
Jay Y. Lee, vice chairman of Samsung Electronics Co, the world’s biggest smartphone and memorychip maker, was found guilty of bribery and embezzlement in connection with the scandal that brought down former South Korean president Park Geun-hye.
Lee “actively provided bribes and implicitly asked the president to use her power to help his smooth succession” at the head of the sprawling conglomerate, the Seoul Central District Court said in its verdict.
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