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| ▲ Jae-Yong Lee’s “Gukjeong Nongdan Case” Arrangement of Trial Process | |
| Ⓒ IMPTER |
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Samsung Electronics Vice Chairman Lee Jae-yong was sentenced to two years and six months in jail at a repatriation trial for the destruction of Gukjeong Nongdan and was imprisoned in court.
The Seoul High Court Criminal Division 1 (Judge Jung Joon-young Song Young-seung, Kang Sang-wook) convicted that Vice-Chairman Lee gave 8.68 billion won as bribes to Park Geun-hye and Choi Seo-won (previously renamed Choi Soon-sil) for help in succession of management.
The court judged that Samsung’s core sports service cost of horseback riding was 3.6 billion won, horse purchase cost of 3.4 billion won, and the gifted center 1.6 billion won were all bribes.
The judge pointed out that “the defendant (Lee Jae-yong) actively offered bribes by taking advantage of former President Park Geun-hye’s request for bribery,” and said, “I made an implicit request to use the president’s authority for succession work.”
Along with Vice Chairman Lee Jae-yong, Choi Ji-sung, former head of the Future Strategy Office, and former deputy chief of the US War Office, Jang Choong-ki, were also sentenced to two years and six months in prison and arrested. However, former Samsung Electronics president Park Sang-jin and former Samsung Electronics executive director Hwang Seong-soo were sentenced to two years and six months in prison and four years probation.
Worst crisis Samsung? Looking at the press
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| ▲ ▲ Reported on page 1 of an article related to the Kookmin Daily and Samsung Vice Chairman Lee Jae-yong of Asia Today | |
| Ⓒ Kookmin Ilbo, Asia Today |
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Lee Jae-yong was sentenced to 2 years and 6 months in prison (JoongAng Ilbo)
Lee Jae-yong imprisoned for 2 years and 6 months… and arrested again (Dong-A Ilbo)
Lee Jae-yong’s court arrest… Samsung’s politics collusion’condemnation’ (Hankyoreh)
Lee Jae-yong re-entry after 3 years… Immediately after the sentence, “I have nothing to say” (Chosun Ilbo)
After the arrest of Samsung Vice Chairman Lee Jae-yong on the 18th, the report on the front page of major daily newspapers on the 19th did not go unnoticed. <조선일보>Mann used the words of Vice Chairman Lee as the title, and the JoongAng and Dong-A Ilbo reported mainly on the fact that they were arrested.
<중앙일보>In terms of society, “it will be a big investment all-stop as it was four years ago, but Samsung is also zero watch,” and reported in the subtitle, “The market cap evaporated 18 trillion in one day yesterday.”
<동아일보>Addressed the reaction of the business community from the social side, saying, “It is a dark economic situation… <조선일보>Reported that “the abolition of the no union, apology to the public, abandoning the succession of children… all were useless.”
<아시아투데이>Is called “The worst crisis in the absence of Samsung General Manager” <국민일보>Reported on the 1st page of “Samsung Electronics Another Business Vacancy”.
Overall, when looking at the media reports, we can see at first glance the contents of the arrest of Vice-Chairman Lee and the feelings of regret for Samsung, but there was no report that the Republic of Korea would fall as in the past.
Samsung Electronics’ share price decline, during the previous arrest period?
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| ▲ ▲ Samsung Electronics stock trading status on January 18, when Samsung Vice Chairman Lee Jae-yong was arrested | |
| Ⓒ Google Stock |
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Looking at the trading volume, foreigners sold 980,000 shares, but both individuals and institutions bought 700,000 shares.
On the 18th, when Vice-Chairman Lee was arrested, Samsung-related stock prices declined. Even on February 17, 2017, when he was first arrested, it fell 8,000 won (0.42%) to 1893,000 won (before the par value split).
However, during this period, when Vice Chairman Lee was released on February 5, 2018 due to probation, the share price of Samsung Electronics rose a whopping 26.5%. It has shown that the stock price does not fall unconditionally just because management is locked.
Samsung Vice Chairman Lee Jae-yong was imprisoned for a year until the second trial. Therefore, if you serve only one year and six months in prison, you will be released.