Samsung heir sentenced to 5 years in prison over corruption

14:25, 25 August 2017

SEOUL. KAZINFORM Samsung Electronics Co. remained silent after a local court sentenced its Vice Chairman Lee Jae-yong to five years in prison on Friday, with industry watchers expecting the company to face numerous business uncertainties, Yonhap reports.

The Seoul Central District Court found Lee guilty of bribery, embezzlement and other charges in a massive corruption scandal that led to the ouster of former President Park Geun-hye.

Lee's legal representatives said they will immediately appeal the case.

Prosecutors earlier sought 12 years against Lee, claiming Samsung's de facto leader offered or pledged 43.3 billion won (US$38 million) to win the government's blessing for a merger between two affiliates under terms designed to increase his control over the entire business empire. The court ruled that Lee provided 7.2 billion won in bribes.

Following the prolonged legal battle, industry watchers said South Korea's No. 1 conglomerate is expected to continue to face major hurdles down the road.

There has not been a major tumble among Samsung affiliates since the imprisonment of Lee. Samsung Electronics posted a record-high operating profit of 14.1 trillion won in the second quarter.

Experts, however, said Samsung is expected to face challenges over the long term as the company may struggle to make decisions for key projects including mergers and acquisitions.