Samsung heir Lee Jae-yong, the de facto leader of South Korea's most successful concern group, was sentenced Fri to 5 years prison theatre for offering bribes as well as other crimes.
Lee, 49, was groomed to Pb the conglomerate that was founded yesteryear his gramps as well as became such a dominating strength inward Republic of Korea that it's mockingly called "Republic of Samsung" yesteryear the public.
He took a higher profile role at the world's largest maker of smartphones, telly sets as well as microchips that ability consumer electronics after his manful individual bring upward suffered a ticker assault inward 2014 as well as was poised to cement control. Instead, at the cease of terminal twelvemonth Lee was implicated inward a massive political scandal that culminated inward President Park Geun-hye's ouster.
The courtroom said he was guilty of offering bribes to the onetime president as well as her unopen friend Choi Soon-sil to facilitate a polish handover of ability at Samsung, which is a publicly traded company. Park as well as Choi are also on trial. Influenza A virus subtype H5N1 Samsung lawyer said the guilty verdict would locomote appealed.
- HAS LEE LOST HIS HOLD ON SAMSUNG?
It's almost a rite of passage for the bosses of family-controlled South Korean conglomerates known equally chaebol to become to prison theatre for white neckband crimes only to after brand a comeback. Some were pardoned as well as others got sentences reduced on appeal.
Lee's ain manful individual bring upward was twice convicted for revenue enhancement evasion but received a exceptional presidential pardon as well as hence he could assist Republic of Korea win its bid to host the Winter Olympics for the outset time.
But the princeling's example may locomote dissimilar because the populace is increasingly unwilling to indulge the double standards long enjoyed yesteryear families who were lionized a generation agone for helping to plow Republic of Korea into a manufacturing powerhouse.
The ousted Park's replacement equally president, Moon Jae-in, was elected on hopes his management would cease cozy ties betwixt regime as well as concern as well as cease the emperor-like dominion of chaebol families.
"It's an solely dissimilar the world now," said Park Sang-in, a professor at Seoul National University.
"The public's perception of the problems at chaebol as well as the ask to reform chaebol has significantly changed.”
Perceptions of Lee's concern competency have got also been damaged yesteryear the trial. To insist on his innocence, he gave testimony that made him look clueless as well as non inward charge.
"He was stumbling, stammering, unsure of the basic functions of his ain companionship as well as its offices," said Geoffrey Cain, the writer of an upcoming volume on Samsung.
-HOW HAS THE PUBLIC REACTED?
Many expected Lee would larn a prison theatre judgement because the judiciary has been criticized for yesteryear leniency toward major white neckband crime. Lee's judgement is amid the longest prison theatre terms e'er handed out inward Republic of Korea to a fellow member of a prominent concern family. Usually they larn suspended sentences or pardons.
Civic groups said sentencing Lee to prison theatre fourth dimension was a meaningful stride toward justice. But others idea the penalty was also light.
"I think the courtroom should have got accepted prosecutors' asking for 12 years inward prison," said Choi Sukun, a 37-year-old instructor inward Seoul. "Given the gravity of the case, I think the ruling is also generous.”
Business foyer groups, spell refraining from openly criticizing the verdict, expressed concerns that Lee's absence from the helm of Samsung would convey a toll on the South Korean economy, given Samsung accounts for close i 5th of the nation's exports.
"Samsung Electronics represents Republic of Korea equally a global companionship as well as hence nosotros are deeply worried close the fallout from his long absence," said a spokesman at the Korea Employers Federation, a pro-business foyer group. "It volition locomote a disaster non only to an private companionship but to the nation's economy.”
But South Korea's presidential business office took the verdict equally a stride forward, issuing an odd commentary on a courtroom ruling. "We promise that it would pave the agency to cease persistent government-business collusion," a presidential spokesman said, according to Yonhap.
- IS SAMSUNG'S FUTURE IN JEOPARDY?
Samsung Electronics, the crown precious rock of the Samsung group, has reported tape profits despite Lee's arrest inward Feb as well as a damaging recollect for Milky Way Note vii phones that were prone to battery fires.
The fiscal success was largely thank yous to events gear upward inward motion yesteryear Lee's manful individual bring upward inward the 1990s. The elderberry Lee made the determination to interruption into the retention fleck manufacture as well as followed upward amongst massive as well as risky investments that rivals could non check every year.
Those investments are paying off. Samsung, the world's largest maker of retention chips for servers, mobile devices as well as computers, was the biggest beneficiary of furnish constraints as well as explosive need for mobile devices that pushed upward prices. The nail inward the retention fleck manufacture is expected to terminal a span of years.
Longer term, however, only about analysts encounter risks for Samsung as well as its flagship Samsung Electronics.
"South Korea's chaebol arrangement is similar to monarchy," said Park, the Seoul National University professor. "In the monarchy system, yous ask a king.”
There is also potential for a destabilizing household unit of measurement feud over inheritance when the elderberry Lee dies.
"Samsung was inward the middle of alter as well as that has stopped," said Park Ju-gun, main executive at CEO Score, a private corporate watchdog. "That is a large risk."
AP