Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy.</s>SEOUL (Reuters) - The billionaire head of South Korea’s Samsung Group, Jay Y. Lee, was sentenced to five years in jail for bribery on Friday in a watershed for the country’s decades-long economic order dominated by powerful, family-run conglomerates.

After a six-month trial over a scandal that brought down the then president, Park Geun-hye, a court ruled that Lee had paid bribes in anticipation of favours from Park.

The court also found Lee 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.

Lee, who emerged stony-faced from the Seoul courtroom in a dark suit, but without a tie, and holding a document envelope, was escorted by justice ministry officials back to his detention centre.

“This case is a matter of Lee Jae-yong and Samsung Group executives, who had been steadily preparing for Lee’s succession ... bribing the president,” Seoul Central District Court Judge Kim Jin-dong said, using Lee’s Korean name.

Kim said that as the group’s heir apparent, Lee “stood to benefit the most” from any political favours for Samsung.

Lee denied wrongdoing, and one of his lawyers, Song Wu-cheol, said he would appeal.

“The entire guilty verdict is unacceptable,” Song said, adding he was confident his client’s innocence would be affirmed by a higher court. The case is expected to be appealed all the way up to the Supreme Court, likely next year.

The five year-sentence - one of the longest given to a South Korean business leader - is a landmark for South Korea, where the family-run conglomerates - or chaebols - have long been revered for helping transform the once war-ravaged country into a global economic powerhouse.

But they have more recently been criticized for holding back the economy and stifling small businesses and start-ups.

Samsung, a symbol of the country’s rise from poverty following the 1950-53 Korean War, has come to epitomize the cosy and sometimes corrupt ties between politicians and the chaebols.

“The ruling is a turning point for chaebols,” said Chang Sea-jin, a business professor at Korea Advanced Institute of Science and Technology. “In the past, chaebols weren’t afraid of laws because they were lenient. Now, Lee’s ruling sets a precedent for strict enforcement of laws, and chaebols should be wary.”

Under South Korean law, sentences of more than three years cannot be suspended.

LEADERSHIP VACUUM

The third-generation de facto head of the powerful Samsung Group, Lee has effectively directed operations since his father, Lee Kun-hee, was incapacitated by a heart attack in 2014. Some investors worry a prolonged leadership vacuum could slow decision-making at the group, which has more than five dozen affiliate companies and assets of 363.2 trillion won ($322.13 billion).

Its listed companies make up about 30 percent of the market value of South Korea’s KOSPI stock index.

Many tycoons, including Lee’s father, were convicted of crimes in the past, ranging from bribery, embezzlement and tax evasion, only to get presidential pardons, as both the government and the public feared going too hard on them would hurt the economy.

But South Korea’s new liberal president, Moon Jae-in, who won a May election, has pledged to rein in the chaebols, empower minority shareholders and end the practice of pardoning tycoons convicted of white-collar crime.

The presidential Blue House said in a statement that it hopes the ruling will serve as an opportunity to “end the nexus of business and politics that has held back the country.”

In a June interview with Reuters, Moon said he did not believe Samsung’s operations depended just on Lee.

“When Lee was taken into custody, the share prices of Samsung went up,” Moon said. “If we were to succeed in reforming the running of the chaebols and also increasing transparency, I believe this will not only help the economic power of Korea but also help to make the chaebols themselves more competitive.”

Lee Jae-yong, Samsung Group heir, leaves after his verdict trial at the Seoul Central District Court in Seoul, South Korea August 25, 2017. Lee was handed down 5 years jail sentence while prosecutors sought a 12-year in prison. REUTERS/Chung Sung-Jun/Pool

Investors say shares in chaebol companies trade at lower prices than they would otherwise because of their opaque corporate governance - the so-called Korea Discount.

Shares of Samsung Electronics dropped more than 1 percent, and other group companies, including Samsung C&T; and Samsung SDS, also turned lower after the verdict.

The court said Samsung’s financial support of entities backed by a friend of Park’s, Choi Soon-sil, constituted bribery, including 7.2 billion won ($6.4 million) in sponsoring the equestrian career of Choi’s daughter.

In return, prosecutors say, Samsung sought government support for the 2015 merger of two of its affiliates, which helped Lee tighten control of the conglomerate. His lawyers had argued that the merger was done for business reasons.

Some criminal lawyers had expected Lee to be found innocent of the major charges, as much of the evidence at the trial has been circumstantial. The appeals court and the Supreme Court might put a greater emphasis on prosecutors to provide direct proof of quid pro quo, the lawyers said.

PARK SUPPORTERS OUTRAGED

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

Prosecutors have argued that Park and Lee took part in the same act of bribery - so Lee’s conviction would appear ominous for the former president.

Hundreds of Park’s diehard supporters who rallied outside the court on Friday reacted with outrage to the ruling.

“Our ultimate goal is Park’s acquittal and release,” Kim Won-joon, a 62-year-old former construction worker said. “We worry how today’s guilty verdict for Lee would affect Park’s ruling.”

Such supporters are a minority compared with the huge crowds that turned out in Seoul every week to call for Park’s ouster after the bribery scandal surfaced late last year.

Public approval of Lee’s prosecution may underscore growing frustration in Asia’s fourth-largest economy that the wealth amassed by conglomerates has not trickled down.

Slideshow (4 Images)

“I think it was difficult for a court to ignore public opinion, given that the scandal rocked the country,” said Chung Sun-sup, chief executive of research firm Chaebul.com.

“The five-year sentence was low given that he was found guilty of all the charges. I think the court gave him a lighter sentence, taking into account Samsung’s importance to the economy.”</s>Samsung Group heir Lee Jae-yong arrives at Seoul Central District Court in Seoul on August 25, 2017. — AFP picSEOUL, Aug 25 — The heir to the Samsung business empire, which includes the world’s biggest smartphone maker, was sentenced today to five years in prison for bribery and other offences in connection with the scandal that brought down South Korean president Park Geun-hye.

Lee Jae-yong’s penalty could leave the giant firm rudderless for years and hamper its ability to make key investment decisions.

The vice-chairman of Samsung Electronics, 49, arrived at Seoul Central District Court on a justice ministry bus handcuffed, bound with white rope around his dark jacket, and carrying an envelope of documents.

Lee was found guilty of bribery, embezzlement, perjury and other charges centred on payments and promises by Samsung totalling 43.3 billion won (RM170.98 million) to Park’s secret confidante Choi Soon-sil.

The court found the money was in return for policy favours including government support for Lee’s hereditary succession at the group, after his father was left bedridden by a heart attack in 2014.

The defence had denied the charges, saying Samsung was pressured by Park to make the donations under duress — and that Lee was not aware of them and did not approve them. Four other top Samsung executives were also convicted and received sentences of up to four years.

 Lee’s lawyers said he would appeal.

The demonstrators who mounted giant candlelit protests against Park last year also targeted Lee and other chiefs of the chaebols, as the family-controlled conglomerates that dominate Asia’s fourth-largest economy are known.

South Korea’s GDP is still growing but social and economic frustrations have mounted over the benefits not being equally shared.

Around 800 riot police were deployed around the court to prevent possible clashes between rival sets of demonstrators, Yonhap said.

It was deluged with hundreds of applications for the 30 seats in courtroom 417 available to members of the public, which were allocated by lottery.

Park’s own trial began in the same room in May, and it also saw Lee’s father Lee Kun-Hee convicted of tax and other offences in 2008, receiving a suspended sentence.

The verdict could add impetus to new President Moon Jae-in’s campaign pledges to reform the chaebols.

The firms have long had murky connections with political authorities in South Korea, and past trials of their leaders have often ended with light or suspended sentences, with courts citing their contributions to the economy.

The Lee clan directly owns about five percent of Samsung Electronics shares, but maintains its grip on the wider group through a byzantine web of cross-ownership stakes involving dozens of companies.

The court said Park was aware that Lee wanted state approval for a controversial merger of two Samsung units in 2015, seen as a key step to ensuring his accession.

The deal was opposed by shareholders who said it wilfully undervalued shares of one of the firms.

But it eventually went through after the national pension fund — a major Samsung shareholder — approved it.

Analysts differ on the potential impact of the verdict and sentence on Samsung.

Lee has been Samsung’s de facto leader since his father fell ill, but his lawyers and ex-members of the former elite Future Strategy Office (FSO), which dictated the vast group’s overall direction and major business decisions, sought to portray him as naive and inexperienced.

“Samsung will not be doomed without Jay Lee,” said Geoffrey Cain, the author of a forthcoming book on the group.

“It’s up to the specialists to make their own decisions.”

Samsung appears to have been unaffected by Lee’s absence so far — he was detained in custody in February — with flagship subsidiary Samsung Electronics making record profits on the back of strong demand for its memory chips.

But Chung Sun-sup, the head of corporate analysis firm chaebul.com, said major chaebol decisions on large-scale acquisitions or investments “are often endorsed by the patriarch of a ruling family”, and with Lee in prison the firm “may move more slowly than before”.

Its shares have soared in recent months, but were down 1.05 per cent this afternoon after the verdict.

The ruling is seen as a strong indicator of the likely outcome in Park’s trial, as some of the charges against the ousted head of state her are inextricably linked to the accusations Lee faced. — AFP</s>SEOUL: A South Korean court on Friday (Aug 25) found Lee Jae-yong, the billionaire head of Samsung Group, guilty of corruption charges after a six-month trial in a nationwide bribery scandal that triggered the dismissal from office of the country's president.

He was sentenced to five years' jail for his bribery charge.



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 then president Park Geun-hye 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.



Prosecutors originally demanded a 12-year jail sentence for Lee, who also faces charges of embezzlement and perjury - potentially the longest prison term given to a South Korean business leader.



The third-generation de facto head of the powerful Samsung Group, Lee has effectively directed operations since his father, Lee Kun-hee, was incapacitated by a heart attack in 2014.



Some investors worry that a conviction and long jail term could leave a leadership vacuum, with no one to make big decisions at Samsung, which has more than five dozen affiliate companies and assets of 363.2 trillion won (US$321.8 billion). Its listed companies make up about 30 per cent of the market value of South Korea's KOSPI stock index.



Whatever Friday's verdict, lawyers expect an appeal which could go all the way to the Supreme Court, with a final ruling probably next year.



Prosecutors have said Samsung's contributions to two funds backed by Park aimed to secure government support for a merger of two of its affiliates to tighten Lee's grip on the conglomerate. Lee has denied wrongdoing, and his lawyers say the 2015 merger was done on business merits.



Lee's trial has gripped the nation, and Friday's closed courtroom verdict will be witnessed mainly by lawyers and Samsung officials, as well as some 30 members of the public who won seats through a lottery.



Outside the Seoul Central District Court on Friday, hundreds of supporters of Lee and Park, mostly elderly, waved South Korean flags and shouted "Innocent! Release!" as they were watched on by teams of police, who parked police buses to shield the entrance of the court complex.

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 criticise them for holding back the economy and squeezing smaller businesses.



Investors say shares in chaebol firms trade at lower prices than they would otherwise because of their opaque corporate governance - the so-called Korea discount.



"Chaebol leaders used to get the same sentencing every time, there was even a saying called the '3-5 law' - three years sentencing, five years probation," said Park Sangin, professor of economics at Seoul National University.



"If Lee receives a heavy sentence, it can be seen as the shattering of the 'too-big-to-jail' trend of the past."



Lee's father was convicted of tax evasion in 2009, and had a 3-year sentence suspended, with judges citing his contribution to economic development and "patriotism through business enterprise from job creation". He was pardoned four months after the final ruling.



South Korea's new president, Moon Jae-in, who replaced the disgraced 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.



The ruling is expected to affect the verdict in Park's own corruption trial, expected later this year, as prosecutors argued she and Lee took part in the same act of bribery.



Prosecutors have also indicted top Samsung executives over the bribery scandal, including Choi Gee-sung, who headed the corporate strategy office, dubbed the 'control tower'. It has since been disbanded, and Choi has resigned.



Experts were divided on how Friday's ruling might go, with some lawyers expecting Lee to be found innocent on the major charges, saying much of the evidence at trial appeared circumstantial.</s>SEOUL - The billionaire head of South Korea's Samsung Group, Jay Y. Lee, was jailed for five years for bribery on Friday in a watershed for the country's decades-long economic order dominated by powerful, family-run conglomerates.

After a six-month trial over a scandal that brought down the then president, Park Geun-hye, a court ruled that Lee had paid bribes in anticipation of favors from Park.

The court also found Lee 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.

Lee, who re-emerged stony-faced from the courtroom in a dark suit, but without a tie, and holding a document envelope, was escorted by justice ministry officials back to his detention center.

"This case is a matter of Lee Jae-yong and Samsung Group executives, who had been steadily preparing for Lee’s succession ... bribing the president," Seoul Central District Court Judge Kim Jin-dong said, using Lee's Korean name.

Kim said that as the group's heir apparent, Lee "stood to benefit the most" from any political favours for Samsung.

Lee denied wrongdoing, and one of his lawyers, Song Wu-cheol, said he would appeal.

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

The five year-sentence - one of the longest given to a South Korean business leader - is a landmark for South Korea, where the family-run conglomerates, known as chaebols, have long been revered for helping transform the once war-ravaged country into a global economic powerhouse.

But they have more recently been criticized for holding back the economy and stifling small businesses and start-ups.

Samsung, a symbol of the country's rise from poverty following the 1950-53 Korean War, has come to epitomize the cosy and sometimes corrupt ties between politicians and the chaebols.

"The ruling is a turning point for chaebols," said Chang Sea-jin, a business professor at Korea Advanced Institute of Science and Technology.

"In the past, chaebols weren't afraid of laws because they were lenient. Now, Lee's ruling sets a precedent for strict enforcement of laws, and chaebols should be wary."

Under South Korean law, sentences of more than three years can not be suspended.

The third-generation de facto head of the powerful Samsung Group, Lee has effectively directed operations since his father, Lee Kun-hee, was incapacitated by a heart attack in 2014. Some investors worry a prolonged leadership vacuum, with no one to make big decisions, could slow decision-making at the group, which has more than five dozen affiliate companies and assets of 363.2 trillion won (US$322.13 billion).

Its listed companies make up about 30 per cent of the market value of South Korea's KOSPI stock index.

Many tycoons, including Lee's father, were convicted of crimes in the past, ranging from bribery, embezzlement and tax evasion, only to get presidential pardons, as both the government and the public feared going too hard on them would hurt the economy.

But South Korea's new liberal president, Moon Jae-in, who won a May election, has pledged to rein in the chaebols, empower minority shareholders and end the practice of pardoning tycoons convicted of white-collar crime.

There was no immediate comment from the government but Moon told Reuters in an interview in June he did not believe Samsung's operations depended just on Lee.

"When Lee was taken into custody, the share prices of Samsung went up," Moon said.

"If we were to succeed in reforming the running of the chaebol and also increasing transparency, I believe this will not only help the economic power of Korea but also help to make the chaebol themselves more competitive."

Investors say shares in chaebol trade at lower prices than they would otherwise because of their opaque corporate governance - the so-called Korea Discount.

Shares of Samsung Electronics dropped more than 1 percent and other group companies, including Samsung C&T and Samsung SDS, also turned lower after the verdict.

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

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

His lawyers had argued that the merger was done for business reasons.

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

Prosecutors have argued that Park and Lee 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 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 media claims.

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

But such supporters are a minority compared with the huge crowds that turned out in Seoul every week to call for Park's ouster after the bribery scandal surfaced late last year.

Public approval of Lee's prosecution may underscore growing frustration in Asia's fourth-largest economy that the wealth amassed by conglomerates has not trickled down.

"I think it was difficult for a court to ignore public opinion, given that the scandal rocked the country," said Chung Sun-sup, chief executive of research firm Chaebul.com.

"The five-year sentence was low given that he was guilty of all of the charges. I think the court gave him a lighter sentence, taking into account Samsung's importance to the economy."</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>Oh boy! What a week for Samsung, what a week for courts across the globe. It was only two days ago , the most familiar face of South Korean conglomerate , launched what can be described as one of the best smartphones ever- Galaxy Note 8. 

 

 Unfortunately, this was followed by really bad news for Samsung, but this time they would have wished the new was about exploding batteries. , the heir apparent to the Samsung throne, is now facing imprisonment up to 12 years after a court in Seoul convicted him over a bribery case. He was arrested earlier this year with regard to the same case, and this was the first time a head of a 'chaebol' (South Korean family owned conglomerate) receiving such as long sentencing. 

 

 To learn what happened and why was Lee Jae-Yong was imprisoned, you have to first to first understand three important players and the recent South Korean political scandal. The three people here are Lee Jae-Yong himself, former president of the country , and her 'handler' . 

 

 When you look at the bigger picture, the arrest and sentencing of Lee is nothing more than a sub plot, one amongst the series of arrests that has happened ever since the unraveling of the Park- Choi political scandal. 

 

 A quick summary of the political scandal goes like this. Park, daughter of the 3rd South Korean President, and her family was very close to and influenced by a spiritual leader (shaman) called, Choi Tae-Min, father of Choi Soon-Sil, for many decades. As Park became the first women president of South Korea in 2013, this influence extended to unprecedented levels. Choi Soon-Sil was alleged for dictating Park's decisions on everything from her handbags to state affairs. 

 

 As for Samsung's Lee Jae-Yong, this was the time when his father, Lee Kun-hee, the chairman of Samsung group, decided to relinquish the control of the conglomerate following a heart attack. As a result, Lee Jae-Yong became the de facto head of Samsung Group from 2014. 

 

 In order to strengthen his control, Lee Jae-Yong wanted a major restructuring of Samsung, that requires South Korean government approval. It is alleged that Lee gave donations worth 41bn won or $ 36 million to a non-profit foundation operated by Choi Soon-Sil, as a bribe to get the government support for the corporate restructuring. 

 

 This is not the first time a top executive of chaebol has been convicted of corruption. However, in the past, the sentences were suspended, granted long probations, or even have been pardoned by the president. This has even lead to the joke called "three-year imprisonment, five-year probation". But, it seems that won't be the case this time, as the new president Moon Jae-In, has already said there will be no more presidential pardons. 

 

 Although, the conviction marks a huge blow to Samsung, the group's business operations have continued largely unaffected since Lee's arrest six months ago. The sentencing raises serious questions over the future leadership of the conglomerate. Lee has two sisters, who are in management roles in Samsung group. It is unclear whether they will assume responsibility. 

 

 (Image Credit: Economic Times)</s>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>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.
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.