Lee Jae-yong, Samsung vice chair and heir to the company's controlling family, has been sentenced to five years imprisonment in the dramatic conclusion to a major bribery scandal that has rocked South Korea's largest company.

Also known under the Anglicised name Jay Y. Lee, Lee Jae-yong was arrested in February this year following an appeal to the Seoul Central District Court by special counsel investigating alleged bribery and wrongdoing by South Korean President Park Geun-hye. In its appeal, the counsel claimed that Lee offered bribes to the tune of £29 million to Choi Soon-sil, close friend and confidant of President Park, to secure the government's backing of a merger between two Samsung subsidiaries which company chair Lee Kun-hee used to transfer control of the company to his son Jae-yong - a move which completed an unbroken line of familial succession traced back to founder Lee Byung-chul in 1969.

Lee denied the charges - which included bribery, embezzlement, perjury, concealment of criminal proceeds, and illicit transfer of assets abroad - but has been found guilty by South Korea's courts and sentenced to five years imprisonment, lower than the 12-year sentence requested by the prosecution. Naturally, Lee will appeal the case - which could drag the matter out into 2018.

Reporting on the case, the Guardian points out that the sentence breaks the traditional but unwritten '3-5 law' in which leaders of the nation's family-run conglomerates - known as chaebol - are typically sentenced to three years maximum followed by a five-year probationary period. 'If Lee receives a heavy sentence,' Seoul National University professor of economics Park Sangin told the paper, 'it can be seen as the shattering of the "too-big-to-jail" trend of the past.'

Samsung has not issued a statement, but Lee's lawyer Song Woo-cheo has pledged to appeal. </s> A court in Seoul is set to decide whether the billionaire heir-apparent of the Samsung conglomerate will be jailed for corruption.

Lee Jae-yong is facing accusations of bribery linked to a scandal that triggered the impeachment of South Korea’s former president.

Prosecutors are asking for a 12-year jail sentence. He denies all charges.

The case has gripped the public amid growing anger against South Korea’s biggest companies, known as chaebols.

Why is he on trial?

Mr Lee, also known as Jay Y Lee, has been detained since February on a string of corruption charges including bribery, embezzlement and hiding assets overseas.

He stands accused of giving donations worth 41bn won ($36m; £29m) to non-profit foundations operated by Choi Soon-sil, a friend of South Korea’s former President Park Geun-hye, in return for political favours.

The 49-year-old had been standing in as chairman for his ill father, Lee Kun-hee, who suffered a heart attack and slipped into a coma in 2014.

Prosecutors alleged that the donations were made to Ms Park’s confidante to win government support for a big restructuring of Samsung that would strengthen Mr Lee’s control over Samsung Electronics.

But the defence said he was not involved in making day-to-day business decisions at South Korea’s biggest conglomerate and that the payments were signed off without his knowledge.

The charges carry a maximum sentence of 20 years in prison, but he would almost certainly appeal against any conviction.

Yet he may yet escape a jail term even if he is convicted. Many top executives of South Korea’s biggest companies, including his father, have been convicted of crimes but were pardoned.

Who else is involved?

Mr Lee is the most high-profile figure arrested in the investigation and was charged along with four other Samsung executives.

They include former Samsung Group vice-chairman Choi Gee-sung, former president Chang Choong-ki, former Samsung Electronics president Park Sang-jin and executive vice-president Hwang Sung-soo.

Three of them resigned after the case emerged but have denied all the charges including bribery and hiding assets.

They stand accused of bribing Park to pave the way for the merger of two publicly owned Samsung companies, despite opposition from shareholders.

What does it mean for Samsung?

The Samsung Group, made up of 60 interlinked companies, is crucial to the South Korean economy, with sales equivalent to about a fifth of the national GDP.

The chaebol includes a shipbuilding division, construction company, pharmaceuticals and advertising arms. Other chaebols include LG, Lotte and Hyundai.

Mr Lee became a Samsung president in 2009 and in 2013, he was made vice-chairman of Samsung Electronics, which makes smartphones, televisions, cameras and hard drives.

But since Mr Lee’s father suffered a heart attack in 2014, he has been considered the de facto boss of the entire Samsung group.

Regardless of the outcome, the case is likely to damage Mr Lee’s reputation as one of the country’s most powerful business leaders.

However, since his arrest six months ago some of Samsung’s business operations seem to have continued largely unaffected.

Samsung Electronics posted a record profit of 11tn won for its most recent quarter and the firm has released its new flagship Galaxy S8 smartphone, closing the book on the disastrous recall of the exploding Galaxy Note 7. </s> SEOUL, South Korea -- Prosecutors have requested the arrest of the Samsung heir Lee Jae-yong as a bribery suspect in the influence-peddling scandal that led to the impeachment of South Korea's president.

The special prosecutors office said Monday that it requested an arrest warrant for Lee, the 48-year-old Samsung Electronics vice chairman.

It said it also indicted ex-health minister Moon Hyung-pyo on charges he abused his power to compel the national pension fund to support a contentious Samsung merger in 2015.

Last week, the investigators questioned Lee on allegations Samsung won government favors such as getting backing for the merger in exchange for donating corporate funds to various entities controlled by Choi Soon-sil, a long-time friend of President Park Geun-hye. She has been jailed.

Lee earlier denied the allegations. Samsung had no comment. </s> The billionaire head of South Korea's Samsung Group, Jay Y. Lee, was jailed for five years for bribery on Friday after a six-month trial over a scandal that brought down the president.

Lee had paid bribes in anticipation of favors from then president Park Geun-hye, according to a landmark ruling by a Seoul court, which also found him guilty of hiding assets abroad, embezzlement and perjury.

Lee, the 49-year-old heir to one of the world's biggest corporate empires, has been held since February on charges that he bribed Park to help secure control of a conglomerate that owns Samsung Electronics, the world's leading smartphone and chip maker, and has interests ranging from drugs and home appliances to insurance and hotels.

One of his lawyers, Song Wu-cheol, said Lee would appeal the lower court ruling.

"The entire verdict is unacceptable," Song said, adding that he was confident his client's innocence would be affirmed by a higher court.

Under South Korean law, sentences of more than three years can not be suspended. The five year-sentence is one of the longest prison terms given to a South Korean business leader.

The Seoul Central District Court said Samsung's financial support of entities backed by Park's close friend, Choi Soon-sil, constituted bribery, including 7.2 billion won ($6.4 million) in sponsoring the equestrian career of Choi's daughter.

In return for the contributions, prosecutors say, Samsung sought government support for a controversial 2015 merger of two of its affiliates, which helped Lee tighten his control of the conglomerate.

His lawyers had argued that the merger was done on business merits but the court did not accept that.

Park, who was forced from office in disgrace, is facing her own corruption trial, with a ruling expected later this year.

Prosecutors have argued that Park and Lee two took part in the same act of bribery so Lee's conviction would appear ominous for Park.

Hundreds of rowdy, diehard Park supporters rallied outside the court earlier in the day to demand Lee's acquittal.

"The trials of former President Park Geun-hye and Samsung Jay Y. Lee go hand in hand," said Son Tong-sok, 63, who heads a conservative group, holding a Korean flag.

Son said prosecutors had built their cases on circumstantial evidence and unsubstantiated claims reported in the media.

"Arresting these two innocent people are violations of human rights," he said.

Samsung, founded in 1938 by Lee's grandfather, is a household name in South Korea and a symbol of the country's dramatic rise from poverty following the 1950-53 Korean War.

But over the years, it has also come to epitomize the cosy ties between politicians and powerful family-controlled business groups - or chaebols - which have been implicated in a series of corruption scandals.

South Koreans, who once applauded the chaebols for catapulting the country into a global economic power, now criticize them for holding back the economy and squeezing smaller businesses.

South Korea's new president, Moon Jae-in, who replaced the Park after a May 9 election, has pledged to rein in the chaebols, empower minority shareholders and end the practice of pardoning corporate tycoons convicted of white-collar crime. </s> South Korea’s Special Prosecutor’s Office on Monday sought an arrest warrant against Samsung chief Jay Y Lee, who is accused of paying bribes worth millions to President Park Geun-hye’s friend, who is at the centre of an extortion scandal. Jay Lee is also accused of embezzlement and perjury, according to the application for an arrest warrant, Reuters reported.

The vice chairman of Samsung Electronics faces allegations of paying bribes worth 43 billion won (more than Rs 200 crore) to organisations with links to Choi Soon-sil, the president’s long-time friend and confidante. He had allegedly paid bribed to ensure the merger of two company affiliates as well as his control of the family business – he became the de facto head of the Samsung Group after his father was incapacitated by a heart attack in 2014.

Spokesman for the prosecution Lee Kyu-chul said that the office had evidence to prove that both Park Geun-hye and Choi Soon-sil had profited from payments made by the Samsung chief. “The special prosecutors’ office, in making this decision to seek an arrest warrant, determined that while the country’s economic conditions are important, upholding justice takes precedence,” he added.

Samsung – South Korea’s largest conglomerate, generating about 17% of the country’s revenue – has denied the accusations: “It is especially hard to accept the special prosecutor’s assertion that there was improper request for a favour related to the merger or succession of control,” the company said in a statement. Shares of Samsung Electronics ended 2.14% lower after the news broke.

The South Korean Parliament had impeached President Park Geun-Hye on December 9, following accusations of colluding with Choi Soon-sil to extort money in the form of donations from South Korean companies. The money, which was transferred to non-profit foundations controlled by Choi Soon-sil, was allegedly used for personal gains. The president also faces accusations of ordering her aides to leak official state documents to her friend, who has no official position in the South Korean government.

The Constitutional Court of South Korea has six months to decide on whether it will uphold the impeachment motion. Till then, Prime Minister Hwang Kyo-ahn holds the responsibility of running the country. If the court decides to remove Park Geun-Hye from the position, South Korea will have to elect a new president within 60 days of the ruling. </s> S.Korea prosecutors undecided on further arrest warrant request for Samsung chief

SEOUL, Jan 19 (Reuters) - South Korea's special prosecutor's office said on Thursday it has not decided whether to make another arrest warrant request for Samsung Group leader Jay Y. Lee after a court rejected its first request.

Special prosecution spokesman Lee Kyu-chul said Lee has argued that he is a victim of coercion due to pressure from President Park Geun-hye but that the prosecution was not convinced of his argument.

The 48-year-old executive was named a suspect as part of an investigation into a graft scandal that has led to the impeachment of Park.

The spokesman also said Samsung Group Vice Chairman Choi Gee-sung had been classified as a suspect on suspicion of bribery but did not elaborate further. </s> Lee Jae-yong, the de facto boss of tech giant Samsung, has been sentenced to five years in prison after a court found him guilty of bribing a close friend of former President Park Geun-hye. </s> SEOUL, South Korea — Prosecutors requested the arrest Monday of the Samsung heir Lee Jae-yong as a bribery suspect in the influence-peddling scandal that led to the impeachment of South Korea's president.

The special prosecutor's office said it had asked the court to approve a warrant for the arrest of Lee, the 48-year-old Samsung Electronics vice chairman.

Samsung is South Korea's biggest company, and Lee is its de facto head.

The prosecutors office said it also indicted ex-health minister Moon Hyung-pyo on charges he abused his power to compel the national pension fund to support a contentious Samsung merger in 2015.

Last week, the investigators questioned Lee on allegations Samsung won government favors such as getting backing for the merger in exchange for donating corporate funds to various entities controlled by Choi Soon-sil, a long-time friend of President Park Geun-hye. She has been jailed.

Lee earlier denied the allegations. Samsung had no comment when asked about the arrest warrant. </s> A South Korean court has denied a request from prosecutors to arrest Lee Jae-yong, the heir apparent at the country’s largest conglomerate, who is ensnared in a massive bribery scandal.

The Seoul Central District Court ruled that there “appears to be no flight risk and no need to physically detain” the Samsung vice chairman, the Korean Herald reported. He was reportedly interrogated for more than 22 hours over the weekend, and faces charges of bribery, embezzlement, and perjury.

Lee, who was being held in a detention facility pending the court’s decision, was immediately released. The ruling is a setback for prosecutors including Han Dong-hoon, dubbed the “chaebol sniper” for his relentless pursuit of the country’s conglomerates.

The Samsung heir, who has been running the company since his father suffered a heart attack in 2014, is accused of funneling tens of millions of dollars to Choi Soon-sil, a confidante of impeached president Park Geun-hye. The bribes allegedly paid for Choi’s daughter’s equestrian training.
Lee Jae-yong (Jay Y. Lee), the vice-chairman of the Samsung Group is sentenced to five years for graft for his involvement in the 2016 South Korean political scandal that led to the impeachment of President of South Korea Park Geun-hye.