Samsung heir Lee Jae-yong has been reportedly sentenced to five-years in Jail by a court in South Korea on Friday. The verdict followed a trail in which Lee was accused of paying bribes in order to gain Government favours for the Mobile giant.
According to media reports from South Korea, the current Samsung Electronics vice Chairman Lee bribed officials of the former President Park Geun-hye’s Government. It was earlier reported that prosecutors had demanded a 12-year jail sentence and that he also faces charges of embezzlement and perjury.
Samsung shares went down following the news as Samsung Electronics shares went down by 1% while Samsung C&T shares went down by 1.5%. Lee has been in custody since February.
The court said Lee hoped bribes for Park Geun-hye at the time she was president and her close friend Choi Soon-sil would secure government support for a merger that strengthened Lee’s control over the Samsung empire and its flagship Samsung Electronics at a crucial time.
Lee, princeling of South Korea’s richest family and its biggest company, is accused of offering $38 million in bribes to four entities controlled by a friend of Park in exchange for government help with a merger that strengthened Lee’s control over Samsung at a crucial time.
Park, who was embroiled in a tumultuous series of scandals, was removed from office in March and is being tried separately. Her friend Choi Soon-sil also is on trial.
(With inputs from AP)