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takyon writes:

Samsung's vice chairman Lee Jae-yong, aka Jay Y. Lee, has become a suspect in a corruption probe linked to the South Korean President:

A South Korean special prosecutor's office will question Samsung Group leader Jay Y. Lee as a suspect in a widening influence-peddling scandal that may force President Park Geun-hye from office. Prosecutors have been looking into whether Samsung payments of about 30 billion won ($25 million) for a business and foundations backed by Park's friend, Choi Soon-sil, were connected to a 2015 decision by the national pension fund to back a controversial merger of two group affiliates.

Park could become South Korea's first democratically elected leader to leave office early after parliament voted in December to impeach her over the corruption scandal, which has triggered big weekly rallies calling for her to step down. The impeachment must be upheld or overturned by the Constitutional Court.

Meanwhile, protests against President Park Geun-hye, who has been impeached but has resisted stepping down, are heating up:

A Buddhist monk in South Korea has died after setting himself on fire in protest over a 2015 deal struck with Japan on wartime sex slaves. The monk, named as Venerable Jung-won, 64, staged the protest on Saturday at a rally against President Park Geun-hye. He died on Monday night at a hospital in Seoul due to multiple organ failures caused by his burns.

[...] In 2015, Ms Park reached a deal with Japan which saw it promise to pay into a fund for South Korean women who were forced to work in Japanese military brothels during World War Two. As part of the deal, the two countries agreed that the compensation and an apology would "finally and irreversibly" resolve the matter.

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n1 writes:

Samsung's heir apparent Lee Jae-yong has been placed under arrest in South Korea, accused of bribery and other charges. The case is linked to a scandal that led to the impeachment of President Park Geung-hye.

Samsung is accused of giving donations to non-profit foundations operated by Choi Soon-sil, a friend of Ms Park, in exchange for government favours. Mr Lee and the Samsung Group deny any wrongdoing.

[...] Prosecutors accused Mr Lee of giving donations worth 41bn won ($36m;£29m) to organisations linked to Ms Park's close friend Ms Choi. They alleged this was done to win government support for a big restructuring of Samsung that would help a smooth leadership transition in favour of Mr Lee, who is standing in as chairman for his ill father, Lee Kun-hee.

The controversial merger required support from the national pension fund - the allegation is that this support was granted in return for the donations.

Source: BBC

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takyon writes:

Update: BBC and Reuters report that South Korean President Park Geun-hye has been removed from office. The Constitutional Court upheld the impeachment in an 8-0 decision.

Samsung Group's vice chairman and "de facto leader" Jay Y. Lee and four other executives have denied the charges against them in what is being called South Korea's "trial of the century":

Five executives at Samsung, including the conglomerate's de facto leader, Lee Jae-yong, formally denied bribery charges against them on Thursday, in a preliminary hearing for a trial with the potential to shake South Korea.

Mr. Lee, who also goes by the name Jay Y. Lee, and the other executives face charges that strike at the heart of the deep ties between the South Korean government and powerful family-controlled businesses, a source of growing public resentment. Parliament voted in December to impeach President Park Geun-hye over accusations of corruption and other abuses of power, and she could be formally removed from office soon.

But the related arrest of Mr. Lee, scion of the country's biggest and most profitable conglomerate, or chaebol, is a momentous turn in itself. Chaebol bosses, including Mr. Lee's father, have been convicted in previous corruption cases, but punishments have usually been light or commuted. Many see Mr. Lee's trial as a test of whether South Korea can change by abandoning longstanding deference to the business clans that have dominated the country's glittering economic rise. The chief prosecutor has said it could be the "trial of the century."

Also at CNN and The Verge.

Previously: Samsung Vice Chairman a Suspect in South Korean Presidential Bribery Probe
Warrant Sought for the Arrest of Samsung's Vice Chairman

Original Submission

takyon writes:

Samsung Electronics Vice Chairman and "de facto chief" of Samsung Lee Jae-yong (aka Jay Y. Lee) has been sentenced to five years in prison for bribery, embezzlement, perjury, and other charges:

A South Korean court has found Lee Jae-yong, the de facto chief of the sprawling Samsung business empire, guilty of bribery and other corruption charges. Lee, the billionaire son of Samsung's ailing chairman, was sentenced to five years in prison on Friday, well short of the 12-year sentence prosecutors had sought. The criminal conviction is a blow for Samsung, the world's largest smartphone maker and South Korea's biggest family-run conglomerate whose businesses are estimated to account for around 15% of the country's entire economy.

The so-called "trial of the century" has gripped South Korea for months. It's part of a huge influence-peddling scandal that brought down the government of former President Park Geun-hye. "The public is disappointed that this kind of large-scale crime caused by cozy relations between politics and business still happens -- it's not in the past but remains a reality," Judge Kim Jin-dong said in court. He also laid some of the blame on Park, saying the former president made "aggressive demands" of Samsung.

[...] Samsung Electronics' (SSNLF) shares closed down 1.1% in Seoul following the verdict Friday. But the stock is still not far below the record high it hit last month. And although the guilty verdict is a black mark on Samsung's reputation, analysts said Lee's prison sentence is unlikely to affect the tech giant's day-to-day operations. The company has continued to post strong profits since he was first detained in the case.

Lee is following in the footsteps of many other chiefs of South Korea's big family-run conglomerates, known as chaebol. His father, Samsung chairman Lee Kun-hee, was twice sentenced to prison -- and twice pardoned. Serving jail time "is like a rite of passage," David Kang, director of the University of Southern California's Korean Studies Institute, said in an interview before the verdict was announced. "The question will really be how long does he serve."

Lee will appeal the conviction.

Also at Bloomberg (opinion) and NPR (analysis).

Previously: Warrant Sought for the Arrest of Samsung's Vice Chairman
Samsung Vice Chairman a Suspect in South Korean Presidential Bribery Probe
President Park Geun-hye's Impeachment Upheld as South Korea's "Trial of the Century" Begins
Samsung Vice Chairman Ruling Expected on August 25

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