Lee Jae-young could spend the next five years behind bars for his involvement in a corruption scandal which resulted in the impeachment of South Korea’s previous president.
Mr. Jay T. Lee was found guilty by the country’s court system and is sentenced to five years in jail.
He initially was looking at 12 years in prison, and as the acting chairman of Samsung, this court decision is a blot on Samsung’s image.
Whether he will end up serving the full five years, that remains to be seen.
In the past, high-level execs who’ve been found guilty and sentenced to prison terms, have been pardoned.
The president of South Korea, Moon Jae-in is adamant that no pardons or suspended sentences are going to fly this time around.
Still, Lee Jae-young and his lawyers have plans to appeal the ruling to which he is charged with political bribery.
Samsung just unveiled the much-anticipated Galaxy Note 8 the successor of the disastrous Note 7.
It’s a critical time for the company, as it tries to win back the trust of its loyal fan base and investors.
The pressure couldn’t be greater for Samsung, as the iPhone 8 is less than a month from its unveiling.
Samsung is going to have to dig deep to prove to the rest of the world, that it is a company committed to moral and ethical practices.
In the face of a 1% shares decline, what the tech giant needs is strong leadership from the top down.
Lee is the son of the organization’s chairman Lee Kun-hee, who was involved in a slush funds scandal which saw his resignation in 2008.
Lee Kun-hee returned to his post two years later in 2010. His net worth sits around a healthy $15 billion at sits at Forbes #68 position in their 2017 billionaire’s list.
It’s unlikely that Samsung will go under over this latest scandal, and probably at best take another 1-2% hit in share prices.
With a vast portfolio, and billions in the bank the most likely scenario for the company is one of stricter internal management and a slew of new products to keep investors appeased.