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Samsung Boss Gets 5 Years in Scandal Trial

Dan Jones

Samsung's heir apparent has been sentenced to five years by a South Korean court for his role in a bribery and corruption scandal that has already taken the country's president.

Lee Jae-yong, the vice chairman of Samsung Electronics, was sentenced to five years in prison Friday on charges including bribery, embezzlement and perjury. South Korean prosecutors had been seeking a sentence of up to 12 years. (See South Korean Feds Seek 12-Year Sentence for Samsung Boss.)

Lee was arrested in February after being accused of channeling up to 43 billion won ($36 million) to Choi Soon-sil -- a friend of departed president Park Geun-hye -- while looking for government help with a leadership change within Samsung. Lee maintained his innocence throughout the trial. (See South Korea Seeks Warrant for Samsung Vice Chairman's Arrest.)

Lee became the acting boss at Samsung after his father, Lee Kun-hee, had a heart attack in 2014. He will appeal the court's decision, according to domestic reports.

So far, Samsung's legal troubles don't seem to have affected the fortunes of South Korea's largest company. Samsung held a packed launch for its new Note 8 "phablet" in New York City this week. (See Samsung Note 8 Debuts With Sweet Camera Tech, No Bangs.)

— Dan Jones, Mobile Editor, Light Reading

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User Rank: Light Sabre
8/29/2017 | 9:46:03 AM
If Legal Troubles Deepen, Stock Could Get HIt
Though markets are worldwide, stocks tend to shrug off one or two foreign company leaders having legal issues. If that was to happen in the U.S., reaction would be deeper and more swift. However, if the Samsung legal troubles worse, the stock will suffer.
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