Samsung-Heir Lee Jae-yong has been sentenced to five years in prison. To day-to-day business has to make use of South Korea’s most powerful companies for the time being, however, no Worries. Fabian Kretschmer from Seoul.
For the South Korean media, it was the “trial of the century”. With Samsung-Heir Lee Jae-yong today, finally, no less than of the after the President’s second most powerful man in the country in the dock. From the Seoul court, he was sentenced to a prison sentence of five years.
Bribery, embezzlement and perjury
The 49-year-old Lee was speaking, among other things, on charges of bribery, embezzlement and perjury guilty. His judgment is part of a massive corruption scandal that has already led to the removal and detention of Ex-President Park Geun-hye. Among other things, Samsung is said to have converted to paid 34 million euros as disguised donations to a close associate of Park. Part of the money in the upper Taunus in Germany, where Parks Familiar at times had a dubious sports Foundation. In return for the payments to Lee Jae-yong is to have the government approval for a controversial merger of two daughter companies. This has, in turn, increases the power of the Samsung family on the group.
(Archive) Lee at the hearing before the court in 2016
“The Crux in this case is the fraudulent complicity between political and economic forces”, – stated in the verdict. The judges do not assume, however, that Lee had the former government pro-actively to favors asked. Rather, he had accepted the claim of Ex-President Park Geun-hye passive.
Impact on process to President Park
In this respect, today’s ruling has a massive influence on the process of Parking, the prospect of an acquittal has been significantly reduced. Park’s conservative supporters – mostly senior citizens with South Korea-flags – have gathered by the dozens in front of the court. After the pronouncement of Judgment, many broke out in tears. A man with a bullhorn denounced the judges as “stupid and unreasonable”.
“Today’s ruling will have outside of Korea is no too big impact,” says Samsung expert Geoffrey Cain, who had for a book research in recent years, around 300 Samsung Manager interviewed. “The recall of the Galaxy Note 7 was significantly worse for the company than the judgment on Friday,” says Cain. As long as the on the market recently unveiled Galaxy 8 will sell well, not had to worry about Samsung more to his immediate future.
Samsung remains the market leader in Smartphones, memory chips and televisions
Furthermore, The World Market Leader
In fact, Samsung was able to win in the last financial quarter, with record points, Lee was already in custody. Currently, Samsung is the world market leader in Smartphone, televisions and memory chips. The conviction of Lee Jae-yong referred to Cain cynically as a “rite of passage”: “Somehow it’s part of a Chaebol-Board”.
In fact, many of Lee’s other close Relatives of convicted economic criminals, especially his father, Lee Kun-hee, is in 2014, in a coma, but on the paper still runs the company. So far, however, the majority of South Korea to operate this Company were convicted members of the Board also in the case of capital crimes to mild penalties that were repealed in front of the prison to the departure. In the justification the court had relied so far mostly on the national economic interest. In a judgment of over three years, however, this is in South Korea to operate the legal system is not possible. The judgment should keep the Friday of the possible Revision, then the Samsung Princeling Lee must definitely be put behind bars.
Moon wants to Chaebol Reform
For South Korea this is a very heavy judgment. Samsung generated almost a fifth of the gross domestic product, no other company is more strongly associated with the rapid economic recovery of the country such as Samsung. While Samsung is out of the country, especially for its Smartphones to be known, is the company in his home country is also the largest life insurer, operates an amusement Park, build flats, credit cards, and leads purchasing houses and food companies.
President of South Korea, moon Jae-in
The public mood in South Korea, compared with the large family-run conglomerates has changed in the last few years. While in the past the Pride prevailed on the economic achievements, are particularly incensed young South Koreans about the corrupt machinations of Samsung and co. In the election fight for the President post may be a possible Chaebol-Reform was considered to be the most important issue, far ahead of North Korea.
Especially the left-leaning Moon Jae-in, was finally elected with a large margin for the President, was able to score with his hard procedure against Chaebols. Again and again has spoken out Moon against the privileges of the Company members of the management Board, he also wants to stop tax loopholes, and a lack of transparency. He still has to prove whether he can implement his promise in the fact.