Samsung’s de facto CEO Lee Jae Yong, who has served as vice president but has led the company for recent years, was sentenced to two years and six months in prison by the South Korean Supreme Court.
He was tried for bribery and corruption, and for the second time. Park Geun-hye, former president of the country, was also implicated in the case. Recently, the Supreme Court of South Korea dismissed the appeal and upheld the 20-year prison sentence.
News of the verdict led to a fall in Samsung Electronics shares by more than 4%. Experts say the verdict could create a leadership vacuum and prevent Samsung from making decisions about future large-scale investments. “This is a really big blow and a big crisis for Samsung,” said Kim Dae-jong, a business professor at Sejong University.
The court ruling states that Lee Jae Young “actively paid bribes and indirectly asked the president to use his power to help a smooth transition of power. It is unfortunate that Samsung, the country’s leading company and proud global innovator, is involved in crime whenever there is a change in political power. ”
The court found Li guilty of bribery, embezzlement and concealment of criminal proceeds worth about $ 7.8 million. He was first arrested in February 2017. And in August 2017, the court found him guilty and sent him to prison for five years. In February 2018, this sentence was cut in half and then released. The case was later sent back to the Supreme Court, which ruled today.
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