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The heir to the Samsung empire risks going to jail again
The grandson of Samsung Corporation founder Lee Jae-yong was already sentenced to prison in 20021 on a bribery case, he spent about a year behind bars, but now he has a new term of two and a half years. He will not be able to take part in the formation of Samsung’s new management structure after his father’s death if he does go to jail.
Image source: Reuters
It is noteworthy that the first verdict in a year-long investigation into corruption in the ranks of the leadership of Samsung Electronics provided for Lee Jae Young’s five-year prison term, but in fact he spent about a year in prison, having achieved early release. The grandson of the founder of Samsung combined the status of vice president with the role of the de facto head of the South Korean conglomerate. After his father’s death in October last year, Lee Jae Young was supposed to promote progressive reforms aimed at increasing the transparency of the company’s management structure. He was ready to appoint hired managers to key positions, and not people close to the founder’s family.
Implementation of the planned changes is now in question, according to Bloomberg and Reuters, as the South Korean Supreme Court sentenced Lee Jae Young to a new prison term of two and a half years. Samsung vice president’s lawyer told the public that the entire trial was provoked by the abuses of the former Samsung president, and therefore the court’s decision causes only regret on the part of the accused. The last year’s imprisonment will count towards the new one, so Lee Jae Young will actually have to be in prison for no more than a year and a half. The defendant has seven days to appeal the court decision, but legal experts consider the chances of success to be minimal. Shares of Samsung Electronics fell 4% after the verdict was announced.