Samsung Related Groups Plummet After Jay Y Lee is Sentenced Again to Jail

Shares of groups connected to South Korea’s conglomerate Samsung Group were falling heavily on Monday after it was revealed that the company’s heir, Jay Y. Lee, was sentenced to jail again. This time a 30-month year jail term.

South Korea’s Seoul High Court found Lee guilty of bribery, embezzlement and concealment of criminal proceeds, according to Reuters.

52-year old Lee had been freed from jail in 2018 after a South Korean appeals court suspended his prior jail sentence. He was previously charged with giving 29.8 billion Korean won (around $27 million) worth of bribes and promising to give more said local news agency Yonhap.

By the close on Monday in South Korea, shares of Samsung Electronics were down 3.41%. They had fallen as much as 4% earlier in the day.

Samsung C&T’s stock also dropped 6.84% and Samsung SDI declined 4.21%. Samsung Heavy Industries fell 2.74% while Samsung Life Insurance slipped 4.96%.
South Korea’s broader index, the Kospi fell 2.33% by the close of the trading day as a result.

Yonhap had reported that Lee’s sentencing came after a retrial of a bribery case that involved former President Park Geun-hye.

“In this case, a company’s freedom and right to wealth were violated due to the abuse of power by the former president,” said Lee’s lead attorney in a statement given by Samsung Electronics. CNBC translated the statement.

Former president Park recently had her 20-year prison sentence on graft charges upheld, according to Reuters.