Samsung Electronics De Facto Head Jailed, Share Price Plunges
Seoul: A high court in South Korea has sentenced Samsung heir Lee Jae Yong to two years and six months in prison.
The ruling is related to a bribery case retrial, with the earlier one involving former Korean President Park Geun-hye who was also jailed for bribery and corruption.
Lee has been de facto head of Samsung Electronics since 2014, BBC News reported.
News of Lee’s prison sentence resulted in price of Samsung Electronics shares plunging by more than 4%, before they clawed back somewhat.
According to experts, it’s a huge blow and a big crisis for Samsung.
Lee has played the leader’s role in the company since hospitalization of his father Lee Kun-hee in 2014. His father passed away last year/.
The court’s verdict stated that Lee “actively provided bribes and implicitly asked the president to use her power to help his smooth succession” at Samsung.
“It is very unfortunate that Samsung, the country’s top company and proud global innovator, is repeatedly involved in crimes whenever there is a change in political power,” the court observed.
Lee was found guilty of bribery, embezzlement and concealment of criminal proceeds worth about $7.8 million.