Samsung leader move forward out jail trial#

'It will be a disaster not just to an individual company but to the nation's economy.' 'Samsung Electronics represents South Korea as a global company so we are deeply worried about the fallout from his long absence,' said a Korea Employers Federation spokesman. Samsung accounts for about one fifth of the nation's exports. 'That is a big risk.'īusiness lobby groups, while refraining from openly criticizing the verdict, expressed concerns that Lee's absence from the helm of Samsung would take a toll on the South Korean economy. 'Samsung was in the middle of change and that has stopped,' said Park Ju-gun, chief executive at CEO Score, a private corporate watchdog. There is also potential for a destabilizing family feud over inheritance when the elder Lee dies. 'In the monarchy system, you need a king.' 'South Korea's chaebol system is similar to monarchy,' said Park Sang-in, a professor at Seoul National University. It is set to report its highest-ever earnings this year.īut long-term business decisions, such as finding future growth areas and identifying companies for acquisitions, may have to be put on hold. The company has successfully weathered past crises that include two recalls of Galaxy Note 7 smartphones prone to catch fire and Lee's arrest. (AP Photo/Ahn Young-joon, Pool)Īnalysts said the verdict will not immediately have an impact on Samsung's business operations, which are overseen by three chief executives. 7, 2017, recommended imprisoning a billionaire Samsung heir for 12 years, asking court to convict him of bribery and other crimes in a national corruption scandal.

Samsung leader move forward out jail trial#

7, 2017, file photo, Lee Jae-yong, center, vice chairman of Samsung Electronics Co., arrives for his trial at the Seoul Central District Court in Seoul, South Korea. The families who control South Korea's big conglomerates, known as chaebol, were lionized a generation ago for helping to turn South Korea into a manufacturing powerhouse put public tolerance for double standards that put them above the law has been rapidly diminishing. It led the public to fundamentally question the public nature of the president's work and to have 'mistrust in the morality of the Samsung group,' it said. 'The essence of the case is unethical collusion between political power and capital,' the court said in a statement.

The court said Lee and Samsung executives who advised him caused 'a big negative effect' to South Korean society and its economy.

Prosecutors had sought a 12-year prison term. The revelations that led to Lee's arrest in February fed public outrage which contributed to Park's removal.Ī panel of three judges also found Lee guilty of embezzling Samsung funds, hiding assets overseas, concealing profit from criminal acts and perjury. The Seoul Central District Court said Friday that Lee Jae-yong, 49, was guilty of offering bribes to Park Geun-hye when she was South Korea's president, and to Park's close friend, to get government support for efforts to cement his control over the Samsung empire.