À̹ÌÁö È®´ë [Photo by Lee Chung-woo]
Updated with court development
Jay Y. Lee, Samsung Electronics Co. Vice Chairman and de facto leader of South Korea¡¯s biggest conglomerate Samsung Group, is put behind bars for the second time over a bribery charge connected to the impeached President Park Geun-hye, leaving a leadership vacuum in the nation¡¯s most valuable company in a critical time during the surge in chip demand, digital migration and ongoing pandemic crisis.
The Seoul High Court on Monday sentenced Lee to two and a half year prison term by upholding bribery conviction associated with Park and her long-time confidant Choi Soon-sil in return for their backing in solidifying his grip on the nation¡¯s top conglomerate. ¡°It is hard to verify effectiveness of Samsung¡¯s legal compliance monitoring committee, and it is inappropriate to reflect it to the verdict,¡± the court said.
The de facto leader of Samsung Group was jailed in 2017 after receiving a five-year jail term and released in the following year after an appeals court gave a suspended term of two and a half years.
The Supreme Court overturned the appeals court¡¯s ruling in 2019 and ordered a retrial.
À̹ÌÁö È®´ë [Photo by Lee Chung-woo]
Samsung Group pleaded for leniency emphasizing its efforts to strengthen law-abiding management. It launched an internal legal compliance monitoring committee in February 2020. Lee made a public apology in May, vowing not to pass down management of Samsung to his children. He expressed his deep regret about his alleged wrongdoings and pledged to create a ¡°new Samsung¡± in his final testimony in December.
Lee has come to de facto command over the country¡¯s top conglomerate and company after his father and chairman Lee Kun-hee passed away in December.
Samsung Display Co. became the first Samsung affiliate last Thursday to sign a collective agreement after eight months since Lee declared the conglomerate would end its ¡®no labor union¡¯ policy.
Local business lobbying groups petitioned for merciful ruling citing the possible repercussion of the verdict on other companies working in partnership with Samsung affiliates and the country¡¯s overall economy. But the Monday verdict crushed the hope of Samsung and other business leaders.
Samsung Electronics closed Monday down 3.75 percent to 84,700 won. Samsung C&T shares plunged 7.49 percent to finish at 142,000 won and Samsung Life Insurance tumbled 4.96 percent to 78,500 won.
By Jung Hee-young and Choi Mira
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]