London Daily

Focus on the big picture.
Monday, Aug 04, 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
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
×