Samsung top executive sentenced to 30 months in prison for corruption

He’s back in jail for Samsung frontman Lee Jae-yong (aka Jay Y. Lee). Lee was embroiled in a legal battle for his role in “Choigate,” a major South Korean political scandal of 2016 that led to the impeachment and impeachment of South Korean President Park Geun-hye. The scandal is named after the president’s main aide, Choi Soon-sil, a member of a shamanic sect who has been found to be directing the South Korean government’s policy through his influence over the president. It’s a long story, but Choi was sentenced to 20 years in prison for influence peddling, and Park was sentenced to 25 years.

Samsung’s part in the mess involves accusations that Lee bribed Choi for favorable decisions related to the merger of two Samsung subsidiaries. In 2017, Lee was sentenced to five years in prison after being convicted of bribery, embezzlement, flight of capital and perjury. Six months after his conviction, an appeals court halved Lee’s sentence and stayed the bribery and embezzlement charges. Lee was released from prison while the appeal process continued. The case has been traced to the South Korean Supreme Court, which in 2019 ordered a new trial.

Today’s ruling sentences Lee to 30 months in prison, and after already serving a year, the Samsung executive is expected to spend a year and a half behind bars.

“Samsung is above the law”

Lee’s initial conviction and steadily reduced sentence have matched Samsung executives accused of crimes in South Korea. Samsung is so large that it accounts for between 10-20% of South Korea’s GDP, depending on the year, so there is fear the company could harm South Korea’s economy. Lee’s recently deceased father and Samsung Group chairman Lee Kun-hee was convicted of bribery in 1996 and tax evasion in 2009, but has never been arrested or served a prison term. Presidential pardons later erased his criminal record. As a member of the National Assembly said when Lee’s sentence was reduced in 2018, “We have once again confirmed that Samsung is above the law and the court.

Bloomberg’s sentencing report gives us an idea of ​​what South Korea’s “Pro-Samsung” faction thinks about the court ruling. The report quotes Shin Se-don, Emeritus Professor of Economics at Sookmyung Women’s University: “Maybe Lee could run the business from prison, but there will be some setback. Lee’s imprisonment will cause emotional shock to the people. Samsung is a mainstay of our economy and people will be shocked by the outcome. “

Samsung Group is currently undergoing a major transition following the death of Lee’s father, Samsung Chairman Lee Kun-hee, in October. Lee Jae-yong has been Samsung’s de facto leader for years, after Lee Kun-hee was hospitalized in 2014 after a heart attack. Now Lee Jae-yong will have to properly transition from “vice president” to official Samsung president and face the financial challenge of paying South Korea’s 50% estate tax on the Samsung empire. Bloomberg reports that the transition is “likely” to be delayed until Lee is released from prison.