Is Samsung Heir’s 5-year Corruption Sentence a Big Deal for South Korea?
Commenting on the recent verdict in the Samsung trial and what the result means for the conglomerate and for the wider Korean society, Prof. Joseph Fan told VICE News that “Korea has a history of crony capitalism, and businessmen can usually get away with the sentence, so the public is not too optimistic about what will happen to the boss of Samsung in this case.”
In a rare criminal conviction for a South Korean business mogul, the heir to the Samsung empire was sentenced to five years in prison for bribing the government, in a case linked to the impeachment of disgraced former president Park Geun-hye — and one seen as a bellwether for South Korea’s readiness to tackle the corruption and graft that has long plagued its government.
Lee Jae-yong, South Korea’s third richest man, has already vowed to appeal the sentence, and while some experts believe the verdict could be the beginning of a change in South Korea’s relationship with all-powerful conglomerates — known as chaebols — which have wielded huge political power over the country for decades, others believe there is simply no appetite for bringing these companies to heel.
Lee was convicted of a string of charges, including bribery, embezzlement, hiding assets overseas, concealing profit from criminal acts and perjury. The main focus of the case was large donations made by Samsung to foundations run by a close friend and confidant of Park, in return for political favors.
In the past, chaebol leaders in South Korea — including Lee’s own father — have been sentenced to less than three years in prison with the sentence suspended so they don’t have to actually serve any jail time, before seeking a presidential pardon — which they inevitably obtain. With Lee allowed a maximum of two appeals, many are not holding their breath that he will be behind bars for long.
In an interview with VICE News, Joseph Fan, Professor of School of Accountancy and Department of Finance and Co-director of Centre for Economics and Finance at The Chinese University of Hong Kong Business School, said: “Korea has a history of crony capitalism, and businessmen can usually get away with the sentence, so the public is not too optimistic about what will happen to the boss of Samsung in this case.”… Read More (PDF)
Source: VICE News
Date published: 25 August, 2017
Photo: VICE News