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Samsung vice-chairman Jay Y. Lee, otherwise known as Lee Jae-yong. Photo: Reuters

Samsung heir Lee Jae-yong was ‘wrongfully’ released from prison, South Korean court rules

  • The Supreme Court ordered the retrial of Lee, who was released last year after serving 353 days in jail in a high-profile corruption case that helped bring down former president Park Geun-hye
  • The decision comes as Samsung battles headwinds caused by global trade disputes and sluggish demand
South Korea
South Korea’s highest court on Thursday rejected a lower court decision that released the heir to the country’s top business conglomerate from prison last year, a decision that could send him back to jail.
The Supreme Court dismissed as “wrongful” an appeal court decision that gave vice-chairman Jay Y. Lee, otherwise known as Lee Jae-yong, of Samsung Electronics a suspended jail sentence and released him from prison.

“The court rejects the original verdict and returns the case to an appeal court [for a retrial]”, Chief Justice Kim Myeong-su said.

The decision comes as Samsung battles headwinds from the US-China trade war and Seoul’s ongoing trade dispute with Tokyo. Samsung is also facing falling profits from a memory chip downturn and sluggish smartphone demand.

Lee served 353 days behind bars before his release in February 2018 in a high-profile corruption case that involved disgraced former president Park Geun-hye, her controversial aide Choi Soo-sil and Lee. None of them appeared in court.
Former South Korean President Park Geun-hye. Photo: AFP
As a result of the Supreme Court ruling, Park’s case will also be sent back to a lower court. An appellate court last year sentenced Park to 25 years in prison over bribery, extortion, abused of power and other charges. But the Supreme Court ordered the Seoul High Court to deal with Park’s bribery charge separately from other charges.

Local media said Park could face a lengthier prison term because courts handling a case with multiple charges typically do not impose all the maximum sentences for each charge.

Although Park, Choi and Lee were all embroiled in the same Samsung bribery scandal, rulings by lower courts were inconsistent.

Choi Soo-sil, the jailed aide of Park Geun-hye. Photo: AFP

An appeal court found the total amount of bribes Park and Choi received from Samsung was 7 billion won (US$5.7 million), including 3.6 billion won Samsung sent to Choi’s German-based firm to sponsor her daughter Chung Yu-ra’s equestrian training and another 3.4 billion won used to buy three expensive horses.

However, a different appeal court where Lee stood trial acknowledged only the 3.6 billion won as bribes, accepting Samsung’s argument it merely allowed Chung to use the horses and did not transfer ownership to her. With the 3.4 billion won used to buy the horses deducted from the total bribery amount, Lee was freed from prison with a suspended jail sentence.

The Supreme Court overturned the appeal court decision that the 3.4 billion won paid for the horses was not a bribe, returning Lee’s case to an appeal court for a retrial, where he risks being imprisoned again.

Under South Korean law, offering bribes of 5 billion won or more would land the provider in jail for at least five years.

“Samsung Electronics deeply regrets that this case has created concerns across the society,” the company said in a statement. “We will renew our commitment to carrying out the role of a responsible corporate citizen and will avoid a recurrence of past mistakes.

“During the past few years, Samsung has faced significant challenges from external and internal uncertainties and we have been constrained in our efforts to focus on leading new businesses for the future.

“In this increasingly uncertain and difficult economic environment, we ask for support and encouragement so we can rise above the challenges and continue to contribute to the broader economy.”

Additional reporting by agencies

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