London Daily

Focus on the big picture.
Sunday, Aug 24, 2025

Samsung Chief Jailed For 2.5 Years Over Corruption Scandal

Samsung Chief Jailed For 2.5 Years Over Corruption Scandal

The ruling also cements a major shift in South Korea's view on wrongdoings committed by the owners of the country's powerful conglomerates, or chaebol, which led the country's economic rise after the Korean War on the back of what has been criticised as cozy relations with politicians.

A South Korean court sentenced Samsung Electronics vice chairman Jay Y. Lee to two and a half years in prison on Monday, which could delay the group's ownership restructuring following the death of Lee's father in October.

The ruling also cements a major shift in South Korea's view on wrongdoings committed by the owners of the country's powerful conglomerates, or chaebol, which led the country's economic rise after the Korean War on the back of what has been criticised as cozy relations with politicians.

Lee, the country's most powerful businessman at age 52, had served one year in prison for bribing an associate of former President Park Geun-hye when an appeals court suspended it in 2018; a year later, the Supreme Court ordered him retried. His prison time will count against his latest sentence.

Monday's sentencing by the Seoul High Court can be appealed to the Supreme Court within seven days, but legal experts said that because the Supreme Court has already ruled on it once, chances are low that its legal interpretation will change.

The Seoul High Court found Lee guilty of bribery, embezzlement and concealment of criminal proceeds worth about 8.6 billion won ($7.8 million), and said the independent compliance committee Samsung set up early last year has yet to become fully effective.

"(Lee) has shown willingness for management with newly strengthened compliance, as he has vowed to create a transparent company," said Presiding Judge Jeong Jun-yeong.

"Despite some shortcomings... I hope that over time, it will be evaluated as a milestone in the history of Korean companies as a beginning for compliance and ethics," he said.

Lee, dressed in a dark coat and silver tie and standing to hear the sentencing, sat down after it was read. He did not comment when given a chance by the judge.

During his final statement to the court in December, Lee had said that he wants to "make a new Samsung".

"This case involves the former president's abuse of power violating corporate freedom and property rights... The court's decision is regrettable," Lee's lawyer, Lee In-jae, told reporters.

Shares Fall


Lee will be sidelined for the time being from major decision-making at Samsung Electronics as it strives to overtake competitors. He will also be unable to directly oversee the process of inheritance from his father, crucial to keeping control of Samsung.

Analysts agreed that day-to-day operations would not be affected, but large-scale decisions whose results are often only visible after years, such as M&As and major personnel changes, may be.

"(Lee's) absence is not going to disrupt Samsung's current management... Unlike in his father's time, Samsung has been managing by system, decision-making distributed to each business' CEO," said Chung Sun-sup, chief executive of research firm Chaebul.com.

"But besides the hit to his global image, long-term strategies, like currently unplanned investment for the future and restructuring, may stop," he added.

Samsung affiliates' shares fell sharply after the ruling, with Samsung Electronics shares down 3.4% in their worst daily fall in five months, while Samsung C&T shares fell 6.8%.

No More Leniency


Monday's ruling hammered home that the leniency typically shown to South Korean business leaders in the past can no longer be expected.

Lee is expected to return on Monday to the prison in which he served his earlier sentence.

Business groups expressed concern over the effect Lee's sentence might have.

"Lack of long-term leadership can result in delayed entry into new businesses and quick decision-making, leaving them behind in global competition," said Bae Sang-kun, an executive director of lobby group Federation of Korean Industries.

Newsletter

Related Articles

0:00
0:00
Close
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
William and Kate Are Moving House – and the New Neighbors Were Evicted
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
×