Jae-yong Lee, heir to the Samsung empire, was sentenced to 2.5 years in prison on Monday January 18th. The verdict closes a legal battle that began in 2017 and lifted the veil on a huge political-financial matter.
Jae-yong Lee was arrested five years earlier and sentenced to five years in prison for corruption and stock market manipulation. A few months later, in February 2018, he was released on parole for four years.
Taiwanese companies leave China
At the same time as Jae-yong Lee’s arrest, then-President of South Korea, Geun-hye Park, was dismissed by the Constitutional Court in 2017. She was sentenced to 25 years in prison in the first instance in 2018. A decision that was upheld by the country’s Supreme Court January 14th. Compared to the former president’s fate, Samsung’s current vice president is doing fine. He could even benefit from a new publication on appeal.
Since the death of his father Kun-hee Lee in October 2020, Jae-yong Lee has been asked to take over the leadership of the empire, which was founded by his grandfather in 1938. However, since 2014 he has headed the strategic axes of the business, Kun-hee Lee was severely weakened by a heart attack.
However, the imminent prison sentence for Samsung’s new CEO shouldn’t pose a problem for his organization. In 2017, he had kept running the company from his prison and met regularly with his advisors. This approach will most likely be maintained. The 52-year-old shouldn’t be a health problem either.
Samsung’s financial health this time around is also in good shape. The conglomerate recorded a 26% increase in profittaking advantage of the restrictions Huawei suffers from around the world.