Corruption in Korean: why the head of Samsung was given five years in prison

© AP Photo / Ahn Young-oohlala the South Korean Corporation Samsung Lee Jae-YongCorruption in Korean: why the head of Samsung was given five years in prison© AP Photo / Ahn Young-joon

MOSCOW, 29 Sep — RIA Novosti, Natalia Dembinski. The Seoul court sentenced the Vice-President of Samsung Group Lee Jae Yong to five years in prison. The head of the largest Korean corporations are accused, among other things, of bribery, embezzlement and concealment of assets.

Sorokadevjatiletnego billionaire Lee Jae-Yong (No. 3 in the ranking of the richest people in South Korea and No. 239 in the ranking of world’s richest people according to Forbes, the state — USD 6.8 billion) denies all charges — August 28, he filed an appeal and intends to appeal the court’s decision. On how inflamed the corruption scandal, what happens now with Samsung and how the sentence can change the relationship of the Korean business and government — in the material RIA Novosti.

How it all began

Loud sentence top Manager Samsung directly linked with the corruption scandal involving former South Korean President Park Geun-Hye, which led to her impeachment.

The problems of the South Korean authorities began in October 2016, when it became clear that the Cabinet members took bribes in exchange for support of major corporations. Money sent to various non-profit funds, which was headed by a close friend of President Choi sung-SIL, not occupying any public office.

In March last year the constitutional court dismissed Park Geun-Hye from government. She presented multiple charges, including abuse of power and taking bribes — totaling more than $ 50 million.

Together with her and her friend on the dock was the second President of the most powerful corporations of the country, Lotte Shin Dong Bi — he was charged with bribery.

What awaits the former head of state, is not yet known. She is the third South Korean President, was under investigation. One of her predecessors was threatened with the death penalty, the other life sentence. But both eventually released on Amnesty.

A landmark judgement and retribution chaebols

Observers believe: the sentence of Lee Jae ENU can radically change the longstanding economic order of the country, which is dominated by powerful family-run conglomerates — chaebols.

Initially, they helped transform South Korea into a strong economic power. Samsung, for example, became a symbol of the revival of the country after the Korean war of 1950-1953.

In recent years the chaebol regularly criticized for the fact that they constrain the economy, preventing the development of small business and startups.

Samsung quickly became a symbol of corrupt deals between politicians and financial and industrial clans, standing at the head of corporations. In addition to Samsung, a major Korean chaebol — Lotte, Hyundai and LG.

Lee Jae Yong, the heir and Deputy head of Samsung, de facto headed the Corporation in 2014, after his father Lee gon-Hee suffered a heart attack.© REUTERS / Steve Marcus/FilesГлава Samsung Group Lee gon-HeeCorruption in Korean: why the head of Samsung was given five years in prison© REUTERS / Steve Marcus/FilesГлава Samsung Group Lee Gong Hee

Many magnates, including the father, has in the past been charged of bribery, embezzlement and tax evasion, but significant penalties they managed to avoid the authorities feared that attacks on businesses will harm the economy.

According to the head of the Korean research company Chaebul.com precisely these concerns and due to the rather lenient sentence to the head of Samsung. Despite the fact that he was found guilty on all counts, in attention have accepted the importance of Samsung to the economic stability in South Korea.

However, the country’s new President moon Jae-In, who won the may elections, has promised to rein in the chaebols and to discontinue the practice of pardoning tycoons convicted of so-called white-collar crimes.

Source