Bribery: Samsung leader jailed 5 years

jay-y-lee-samsung

Jay Y. Lee

Jay Y. Lee

Billionaire head of South Korea’s Samsung Group, Jay Y. Lee was jailed for five years for bribery on Friday in a watershed for the country’s decades-long economic order dominated by powerful, family-run conglomerates.

After a six-month trial over a scandal that brought down the then president, Park Geun-Hye, a court ruled that Lee had paid bribes in anticipation of favours from Park.

The court also found Lee guilty of hiding assets abroad, embezzlement and perjury.

Lee, the 49-year-old heir to one of the world’s biggest corporate empires, has been held since February on charges that he bribed Park to help secure control of a conglomerate that owns Samsung Electronics.

Samsung Electronic is the world’s leading smartphone and chip maker and has interests ranging from drugs and home appliances to insurance and hotels.

Lee, who re-emerged stony-faced from the courtroom in a dark suit, but without a tie, and holding a document envelope, was escorted by justice ministry officials back to his detention center.

“This case is a matter of Lee Jae-Yong and Samsung Group executives, who had been steadily preparing for Lee’s succession …bribing the president,” Seoul Central

District Court Judge Kim Jin-dong said, using Lee’s Korean name.

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Kim said that as the group’s heir apparent, Lee “stood to benefit the most” from any political favors for Samsung.

Lee denied wrongdoing, and one of his lawyers, Song Wu-Cheol, said he would appeal.

“The entire verdict is unacceptable,” Song said, adding that he was confident his client’s innocence would be affirmed by a higher court.

The five year-sentence – one of the longest given to a South Korean business leader – is a landmark for South Korea.

In South Korea, the family-run conglomerates is known as chaebols and have long been revered for helping transform the once war-ravaged country into a global economic powerhouse.

But they have more recently been criticised for holding back the economy and stifling small businesses and start-ups.

Samsung, a symbol of the country’s rise from poverty following the 1950 to 1953 Korean War, has come to epitomise the cosy and sometimes corrupt ties between politicians and the chaebols.

“The ruling is a turning point for chaebols,” said Chang Sea-jin, a business professor at Korea Advanced Institute of Science and Technology.