Video source: YouTube, Reuters
By Joyce Lee
SEOUL (Reuters) – A South Korean court sentenced him to two-and-a-half years in prison on Monday, which could delay the agency’s property restructuring following Lee’s father’s death in October.
The ruling also confirms a major shift in South Korea’s view of crimes committed by the owners of the country’s powerful conglomerates, or chaebol, which led to the country’s post-war economic boom behind what has been criticized as comfortable relations with politicians.
Lee, the country’s most powerful businessman at the age of 52, had spent one year in prison for bribing a former President Geun-hye Park’s comrade when he was stopped by an appellate court in 2018; a year later, the High Court ordered his resignation. His jail time counts against his most recent sentence.
Monday’s verdict by the Seoul High Court can be appealed to the Supreme Court within seven days, but legal experts say since the Supreme Court already rules once, chances are the legal interpretation will be low. his changing.
Seoul Lee Supreme Court found guilty of bribery, spoofing and concealment of approximately 8.6 billion won ($ 7.8 million) in criminal money, and said the independent compliance committee set up by Samsung early last year still to be effective.
“(Lee) has shown a willingness to govern with newly strengthened compliance, with a commitment to creating a visible company,” said Presiding Judge Jeong Jun-yeong.
“Despite some shortcomings … I hope that, over time, it will be seen as a milestone in the history of Korean companies as the beginning of compliance and ethics,” he said.
Lee, dressed in a dark coat and silver tie and standing to hear the sentence, sat down after reading it. He did not comment when the judge was given a chance.
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In his last statement to the court in December, Lee said he wanted to “make a new Samsung”.
“This case involves the abuse of the former president’s power against physical freedom and property rights … The court’s decision is difficult,” said Lee’s lawyer. , Lee In-jae, to reporters.
SHARES FALL
Lee will be lost at this point from making big decisions at Samsung Electronics as he tries to outperform competitors. He will not be able to directly monitor the process of inheritance from his father, crucial for controlling Samsung.
Analysts agreed that day-to-day work would not be affected, but there may be major decisions whose results will only be seen after years, such as M&A and major staffing changes.
“Absence (Lee) is not going to disturb Samsung’s current management … Unlike his father’s time, Samsung has ruled with a system, decisions of which are communicated to the CEO of each business. , ”Said Chung Sun-sup, chief audit officer of Chaebul.com firm.
“But in addition to its global profile, long-term strategies, such as unplanned future investment and restructuring, may stop,” he said.
Samsung affiliate shares fell sharply after the ruling, with Samsung Electronics shares down 3.4% in their worst daily fall in five months, while Samsung C&T shares fell 6.8%.
NO RISK OWN
Monday’s ruling hit a home that can no longer be expected with the mercy that has generally been shown to South Korean business leaders in the past.
Lee is expected to return to prison on Monday where he was sentenced earlier.
Business groups raised concerns about the potential impact of Lee’s sentence.
“Long-term lack of leadership can lead to delays in new businesses and quick decisions, leaving them behind in global competition,” said Bae Sang-kun, executive director of the lobby group of the Confederation of Korean Industries.
(Won $ 1 = 1,104.1400)
Reciting with Joyce Lee; further recitation by Miyoung Kim and Choonsik Yoo. Edited by Gerry Doyle.
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Source: Reuters
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