In the second instance, the South Korean prosecutor’s office maintained its five-year prison sentence proposal for the executive chairman of Samsung, Lee Jae-yong, after the court ruled in favor of the businessman in the first instance in February. However, the second-degree trial finds the company manager in a much more sensitive period, whose chair this time may not necessarily be swayed because of his Simlis affairs.
Almost to the day exactly one year ago, in mid-November, the prosecution asked for a five-year prison sentence to be served on Lee Jae-yong, on charges of accounting fraud and stock price manipulation related to the 2015 merger of Samsung subsidiaries worth $8 billion.
jae-yong was last sentenced to five years in prison for bribery and fraud in 2017, but the businessman’s sentence was reduced after a retrial, and he was released on parole in 2021 after serving 207 days. The year before last, he also received a presidential pardon, after which he took the executive chair of Samsung, since a presidential pardon also means that, according to local laws, the convict can return to business life.
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According to the indictment, Jae-yong, now 56, and other former executives violated the local capital market law by agreeing on terms that allowed them to consolidate their position in the merger of two Samsung subsidiaries, Samsung C&T and Cheil Industries, ignoring the interests of small investors. at the head of the company.
Thanks to the series of corruption cases, Jae-yong’s positions seem to be rock-solid, since in the case of family-founded local businesses, i.e. small businesses, it is practically set in stone that the management of the company is inherited through the descendants, and Jae-yong is the grandson of the founder, Lee Byung-chul.
Despite the above, the noose around the head of the company’s neck may tighten more and more, as more and more investors are questioning his suitability to lead the company, especially since Samsung Electronics’ shares began to plummet on the stock market, partly after the management reported with unusual honesty about the company’s technological challenges. about his difficulties.
If this were not enough, the protective tariffs planned to be introduced by the second Trump administration could have an extremely sensitive effect on the South Korean multi, which was given a bailout package worth approximately 12 billion dollars by the South Korean government in the first half of November.
Source: www.hwsw.hu
