Samsung Heir Guilty of Bribery, Given 5-Year Jail Sentence

Samsung heir Lee Jae-yong arrives to be questioned in the corruption scandal of former president Park Geun-hye. AFP file photo
Samsung heir Lee Jae-yong arrives to be questioned in the corruption scandal of former president Park Geun-hye. AFP file photo
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Samsung Heir Guilty of Bribery, Given 5-Year Jail Sentence

Samsung heir Lee Jae-yong arrives to be questioned in the corruption scandal of former president Park Geun-hye. AFP file photo
Samsung heir Lee Jae-yong arrives to be questioned in the corruption scandal of former president Park Geun-hye. AFP file photo

The heir to the Samsung empire, Lee Jae-yong, was convicted of bribery and other offenses Friday and jailed for five years in connection with the scandal that brought down South Korean president Park Geun-Hye after a six-month trial.

Lee's penalty could leave the vast conglomerate, which includes the world's biggest smartphone maker, rudderless and hamper its ability to make key investment decisions for years.

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, perjury and other charges related to payments Samsung made to Park's secret confidante Choi Soon-Sil.

In total 8.9 billion won ($7.9 million) was paid in bribes in return for favors including government support for Lee's hereditary succession at the group after his father was left bedridden by a heart attack in 2014, the court found.

Lee had denied the charges, with the defense saying that he was not aware of the payments and did not approve them. 

But presiding judge Kim Jin-Dong said: "He offered bribes in response to strong demands by the president."

The court found, however, that Samsung had no alternative but to comply with Park's browbeating in connection with another 22 billion won paid to foundations allegedly controlled by Choi.

Four other top Samsung executives were also convicted, with two jailed for up to four years, and the other pair given suspended terms.

Lee, who re-emerged stony-faced from the courtroom was escorted by justice ministry officials back to his detention
center. 

His lawyers said he would appeal, and supporters demonstrating outside the court broke down in tears.

One of his lawyers, Song Wu-cheol, said: "The entire verdict is unacceptable.”

He added thathe was confident his client's innocence would be affirmed by a higher court.

Samsung is by far the biggest of the chaebols, as the family-controlled conglomerates that dominate Asia's fourth-largest economy are known, with its revenues equivalent to around a fifth of the country's GDP.

But while the economy is still growing, social and economic frustrations have mounted over the benefits not being equally shared and the demonstrators who mounted giant candlelit protests against Park last year also targeted Lee and other chaebol chiefs.

The court was deluged with hundreds of applications for the 30 seats in room 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 efforts to fulfil his campaign pledges of chaebol reform.



US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter.

The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries, Reuters said.

A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed.

"There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations."

Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%.

A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either.

In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods.

In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade.

A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it.

The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements.

“Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”

Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.

"It’s a gift," one said.