Samsung heir Jay Y. Lee sentenced to 2.5 years in prison for corruption and embezzlement

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The Seoul High Court in South Korea sentenced Lee to 2.5 years in prison on Monday after convicting him of embezzlement and corruption. He was taken into custody after the verdict.

It’s the latest twist in a controversy that has followed Samsung for years. Lee, also known as Jay Y. Lee, was caught in a massive influence peddling scandal that brought down the government of former South Korean President Park Geun-hye. Park herself spends around two decades in prison in connection with the case.

Lee, meanwhile, was convicted of bribes and other corruption charges in 2017, and sentenced at the time to five years in prison. But he remained free after less than a year when an appeals court dismissed some of the charges and suspended his sentence.

This latest conviction is the result of a new trial ordered by the country’s Supreme Court.

Lee’s return to prison comes at a critical time for Samsung. His father Lee Kun-hee, president of the company, passed away last year. The eldest Lee had been in a coma since suffering a heart attack in 2014, but he remained the company’s titular president. His son was the de facto head of Samsung.

Samsung declined to comment on the conviction, instead referring to a statement from Lee’s lawyers.

“This case is, in essence, a violation of society’s rights to liberty and property by the former president abusing his power,” said Injae Lee, the lawyer who heads the vice defense team. -President. “I find the court’s decision regrettable.”

Shares of the company plunged in Seoul after the announcement, however. Samsung (SSNLF) stock fell almost 3.8%.

Lee can appeal if he wishes, although it was not immediately clear whether he intended to do so.

Lee’s legal issues are not over yet. He faces a separate lawsuit over a controversial 2015 merger that helped him tighten control over the company. Eleven Samsung executives, including Lee, were indicted last year for illegal transactions, stock manipulation and perjury.

This case is still pending.

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