London Daily

Focus on the big picture.
Saturday, Sep 13, 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
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
×