Samsung Vice-Chair Appeals Bribery Conviction

Samsung Electronics vice chairman Jay Y. Lee is looking to appeal the five-year jail term he was recently given for bribery and other charges.  Lee was sentenced to five years last Friday.

The sentencing of the billionaire scion was a watershed for South Korea’s decades-long economic order.

The 49-year-old Lee is heir to one of the world’s biggest corporate empires, and is charged in connection with allegations that he attempted to bribe then-president Park Geun-hye to help him secure control of the conglomerate that owns Samsung Electronics, the world’s leading smartphone and chip maker.

Under Korean law, Lee can be kept in detention for a maximum of four months while a court considers his appeal.

“I believe all of you must be devastated by the lower court ruling …We management are also distressed,” Samsung Electronics chief executive officer Kwon Oh-hyun noted in a note to employees. “Please do the best you can where you are …We management will also lead the way in overcoming the crisis with uncommon resolve.”

The charges have taken a bit out of Samsung’s share price — stocks dropped 2 percent Friday.

“Reports from S&P and Fitch over the weekend prompted worries among foreign investors, triggering them to unload more shares today than they did on Friday,” said Kim Ye-eun, a stock analyst at Cape Investment and Securities. “The leadership vacuum may not have short-term effect, but in the long-term, it is a serious problem.”

Samsung Electronics said in a statement that Lee will keep his status as a member of the firm’s board of directors “unless there is a final determination of guilt.”


Latest Insights: 

Facebook is a giant in the ad game, with 2.3 billion active monthly users and $16.6 billion in quarterly advertising revenue. However, its omnipresence makes it a honeypot for fraudsters. In this month’s Digital Fraud Report, PYMNTS talks with Rob Leathern, Facebook’s director of product management, on how the site deploys automated systems and thorough advertiser vetting to close the lid on fraudster attempts.


To Top