Samsung's ex-chief gets 3 years in jail for tax evasion
Former Samsung Group chief Lee Kun-hee was given a 3-year suspended jail sentence for tax evasion.
By Agencies |
SEOUL: Former Samsung Group chief Lee Kun-hee, one of South Korea���s most powerful businessmen, was handed a 3-year suspended jail sentence on Wednesday for tax evasion, but was cleared of other charges.
The court also fined Lee 110 bn won ($109 mn), more than double the amount of taxes he evaded, but cleared him of charges of breach of trust and illegal issuance of bonds aimed at transferring wealth to his children. His jail sentence was suspended for five years.
Analysts and experts had expected Lee to escape prolonged jail time because judges have often been lenient to South Korean corporate leaders convicted of white collar crimes on the basis that putting them behind bars could hurt business.
"We ruled against an actual jail sentence as the degree of illegality was not significant enough," Judge Min Byong-hoon said. South Korean prosecutors had sought a seven-year jail term and a 350 bn won fine for Lee, who led the country���s biggest conglomerate for nearly 20 years. Forbes magazine in March estimated Lee���s personal fortune at around $2 bn, and his son���s was assessed at around $1.7 bn.
"The special prosecutors actually made it easier for Samsung to get away," said Song Won-geun, an economics professor at Jinju National University. "South Korea���s tradition to be lenient towards economy-related crimes has distorted the economic order of the nation," said Rhie Sang-min of the People���s Solidarity for Participatory Democracy. "It only further encourages economic crimes down the road." A number of Samsung executives were present in the packed courtroom. "I am sorry," Lee told reporters as he left the courthouse.
The court also fined Lee 110 bn won ($109 mn), more than double the amount of taxes he evaded, but cleared him of charges of breach of trust and illegal issuance of bonds aimed at transferring wealth to his children. His jail sentence was suspended for five years.
Analysts and experts had expected Lee to escape prolonged jail time because judges have often been lenient to South Korean corporate leaders convicted of white collar crimes on the basis that putting them behind bars could hurt business.
"We ruled against an actual jail sentence as the degree of illegality was not significant enough," Judge Min Byong-hoon said. South Korean prosecutors had sought a seven-year jail term and a 350 bn won fine for Lee, who led the country���s biggest conglomerate for nearly 20 years. Forbes magazine in March estimated Lee���s personal fortune at around $2 bn, and his son���s was assessed at around $1.7 bn.
"The special prosecutors actually made it easier for Samsung to get away," said Song Won-geun, an economics professor at Jinju National University. "South Korea���s tradition to be lenient towards economy-related crimes has distorted the economic order of the nation," said Rhie Sang-min of the People���s Solidarity for Participatory Democracy. "It only further encourages economic crimes down the road." A number of Samsung executives were present in the packed courtroom. "I am sorry," Lee told reporters as he left the courthouse.
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