Lee Jae-yong, heir to the Samsung empire and its de facto leader, has been found guilty on charges of bribery and embezzlement, and other crimes by a South Korean court. Lee has been sentenced to five years in prison.
That’s less than the 12-year term prosecutors were hoping for. But it’s long enough to ensure that he will actually spend time behind bars. Lee’s father, Lee Kun-hee, himself was once convicted for tax evasion, but he never served prison time because sentences of up to three years (paywall) can be suspended.
Lee,49, has been in detention since February and proclaimed his innocence throughout the trial and his lawyer said he would appeal the verdict. Along with Mr Lee’s sentencing, former Samsung executives were also convicted Friday. Former Samsung Corporate Strategy Office chief Choi Gee-sung and former President Chang Choong-ki were each sentenced to four years in prison, while two other executives get suspended prison terms.
This year’s case, dubbed the “ Trial of the Century,” transfixed the nation as it shone a spotlight on the interaction between South Korea’s chaebol and the political elite. Through hundreds of hours of testimony from dozens of witnesses, prosecutors sought to draw a link between backing from a state-run pension for a 2015 merger of Samsung affiliates and money paid to a confidante of then President Park Geun-hye, including an $800,000 horse for the friend’s daughter.
Mr Lee, choking back tears at times, testified that he knew little about Samsung affiliates other than the electronics business, and that he wasn’t part of the approval or decision-making process. Song Wu-cheol, Mr Lee’s lawyer, said they would appeal the ruling.
Samsung Electronics is comprised of about 60 units selling life insurance to ships. Since Mr Lee’s arrest, it has posted record net income and released the Galaxy S8 smartphone to critical and commercial success. Semiconductor sales are booming, shares reached an all-time high and it has just unveiled the new Note 8 device.
Controlled by the Lee family through a web of cross-holdings, Samsung is South Korea’s biggest conglomerate, comprised of about 60 units selling life insurance, cargo ships and clothes. The empire has a market capitalisation of about $395bn (£309bn).
