Posted on 01/18/2021 6:34:11 PM PST by SeekAndFind
SEOUL: The de facto chief of South Korea's Samsung business empire was convicted Monday over a huge corruption scandal and jailed for two and a half years, in a ruling that deprives the tech giant of its top decision-maker.
Lee Jae-yong, vice-chairman of Samsung Electronics, the world's biggest smartphone and memory chip maker, was found guilty of bribery and embezzlement in connection with the scandal that brought down 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.
"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."
It jailed him for two and a half years, concluding a retrial that was the latest step in a long-running legal process that has hung over Samsung for years.
Lee -- who had earlier walked into court grim-faced and wearing a facemask, without responding to reporters' shouted questions -- was immediately taken into custody.
He has effectively been at the head of the multi-faceted Samsung group for several years after his father was left bedridden by a heart attack, finally dying in October.
Samsung is by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the world's 12th-largest economy.
Its overall turnover is equivalent to a fifth of the national gross domestic product and it is crucial to South Korea's economic health.
Its rise has been driven by a willingness to invest billions in strategic bets on key technologies.
But experts say the sentence will create a leadership vacuum that could hamper its decision-making on future large-scale investments.
"It's really a huge blow and a big crisis for Samsung," said Kim Dae-jong, a business professor at Sejong University.
- Public apology -
The case centres on millions of dollars the Samsung group paid Park's secret confidante Choi Soon-sil, allegedly for government favours including ensuring a smooth transition for Lee to succeed his then-ailing father.
The scandal highlighted shady connections between big business and politics in South Korea, with the ousted president and her friend accused of taking bribes from corporate bigwigs in exchange for preferential treatment.
Lee was first jailed for five years in 2017, after Park's ouster.
An appeals court dismissed most of his bribery convictions and gave him a suspended sentence the following year, but the Supreme Court later ordered the 52-year-old to face a retrial.
In May, Lee made a rare public apology, bowing before flashing cameras for company misconduct including the firm's controversial plan for him to ascend to the leadership.
His own children, he promised, would not succeed him in top management roles at the company.
Both Lee's father Lee Kun-hee and grandfather -- Samsung founder Lee Byung-chull -- had brushes with the law themselves but never served time behind bars.
Earlier this month, Samsung Electronics, the group's flagship subsidiary, flagged a jump of more than 25 percent in fourth quarter operating profits, citing benefits from pandemic-induced working from home that boosted demand for devices powered by its chips.
Analysts forecast a stable outlook for the company in 2021, driven by continued demand for memory chips.
What? ... a country that puts crooked businessmen in jail ?
Watched “The Other Guy” last night.
One of the funniest movies I’ve ever seen .
The credits at the end had sickening but funny graphics on the rewards crooked businessmen got here in the good ol’ USA... TARP etc ... a real knee slapper
Hey, I thought those oriental cultures were supposed to do bribery. Come see, come saw. Or whatever. Of course, that is what my Dad said about his dealings with the Pacific Theater during WW2. Maybe it has changed.
I wish it would happen to the head honchos at Facebook, Twitter, Amazon and Google.
Globalists aiming for another company.
I’ve heard that in s Korea if you are influential and your political party loses, you wind up in jail. They find ways to take your money and imprison you.
Anyone here a s Korea expert?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.