Samsung’s heir has been sentenced to a second prison sentence in less than five years, and even if the South Korean tech giant manages to maintain its day-to-day business activity in his absence, the ruling is likely to overshadow.
The Seoul Supreme Court ruled on the vice chairman of the group Samsung (Lee Jae-yong) Lee Jae-yong, also known as (Jae Wai Lee) Jay Y. Lee, was imprisoned for two and a half years a day after being found guilty of embezzlement and bribery.
Lee’s prison sentence means the company is losing a key decision maker at a time of strategic turmoil in some of Samsung’s core industries.
China and the United States are in a cold war because of companies like Huawei and SMIC, and there is a global shortage of semiconductors, and car makers and technology companies are coming together to shape the future of the auto industry.
The scandal is also the latest development in a long line of legal issues faced by Samsung’s heir.
Lee was convicted of bribery and other corruption charges in 2017 as part of the massive scandal that brought down the government of former South Korean President Park Geun-hye.
Samsung’s heir was released less than a year later when an appeals court canceled some of the charges and suspended his sentence, but the country’s Supreme Court later ordered a retrial, leading to the new ruling.
Samsung – the largest family conglomerate in South Korea – is working in everything from electronics and parks to life insurance.
It has been the world’s largest smartphone seller for several years, and is the leading supplier of memory chips and displays to competitors.
Lee has been the de facto leader of the company since his father fell into a coma in 2014 and died last year. The role of Samsung’s heir was played by Directing new projects.
The vice president also had a hand in big deals in the company, such as the acquisition of a company Harman International Worth $ 8 billion, It is an American company that manufactures infotainment, safety and security systems for cars.
These decisions involve tens of billions of dollars, and in the absence of Samsung’s heir, the company may make conservative decisions in making risky investments.
Having me in jail is also a problem for Samsung, as you can Imagine how the global business of Apple would be affected if CEO Tim Cook was jailed for A bribe he gave the US government millions of dollars.
And corporate investors have become more socially conscious in recent years, you may want to turn away from a company tainted by scandal.
The ruling could have some positive effects, according to Chung Sun-sup, editor-in-chief of Chaebol.com, a site that specializes in analyzing family-run conglomerates in Korea.
Analysts said long ago: The circulation of concessions, bribes and political influence between politicians and businessmen is practically prevalent in the country.
Lee’s father, the former president of Samsung, was found guilty of bribery and tax evasion but avoided jail and received a presidential pardon.
Other family conglomerate leaders have been convicted of criminal offenses, released after light sentences and allowed to return to running their businesses.
And sending me back to prison might indicate that the state is ready to take the problem more seriously. “This is the beginning of untangling the corrupt relationship between the government and companies, which is good for the Korean economy in the long run,” Sope said.