ID :
75303
Fri, 08/14/2009 - 15:54
Auther :
Shortlink :
https://www.oananews.org//node/75303
The shortlink copeid
LEAD) Former Samsung chairman given suspended jail term for illicit bond deals
(ATTN: UPDATES with more details)
SEOUL, Aug. 14 (Yonhap) -- A Seoul court on Friday sentenced former Samsung Group
Chairman Lee Kun-hee to a three-year suspended prison term and a fine of 110
billion won (US$89.2 million) for illegal bond transactions that caused huge
financial losses to a Samsung affiliate.
The Seoul High Court made the ruling, convicting the 67-year-old Lee of forcing
Samsung SDS, a system integration unit of Samsung Group, to sell bonds with
warrants (BWs) to his son and daughters at a huge discount in 1999, incurring a
loss of 22.7 billion won for the Samsung company.
The court said Lee's jail term will be suspended for five years. In late July,
prosecutors demanded a six-year jail sentence for Lee.
The former chairman was indicted last year for causing Samsung SDS to lose 154
billion won in 1999 through bond deals, but the lower courts found him not guilty
in that case.
In their ruling, the courts stated that the statute of limitations had expired in
the Samsung SDS case as the amount of losses caused by the Lee family to the
company did not exceed 5 billion won. The lower courts estimated the appropriate
issuance price at 9,740 won per share, while the Lee family traded the bonds at
7,150 won in 1999.
The Supreme Court, however, ordered the lower courts in May to review the not
guilty verdict for Lee, saying the amount of loss incurred to the Samsung
affiliate should be recalculated.
Delivering the guilty verdict on Friday, the appellate court set the appropriate
market price of Samsung SDS's BWs at 14,230 won per share, extending the case's
statute of limitations to 10 years.
In its May ruling, the Supreme Court upheld the lower courts' not guilty verdict
for Lee on two separate charges of illegally transferring wealth and managerial
control of South Korea's top conglomerate to his only son, Jae-yong.
Lee had served as Samsung chairman for 20 years and stepped down from the group's
top management post in April 2008 after he was indicted for causing losses at
Samsung companies and for failing to pay taxes.
brk@yna.co.kr
(END)
SEOUL, Aug. 14 (Yonhap) -- A Seoul court on Friday sentenced former Samsung Group
Chairman Lee Kun-hee to a three-year suspended prison term and a fine of 110
billion won (US$89.2 million) for illegal bond transactions that caused huge
financial losses to a Samsung affiliate.
The Seoul High Court made the ruling, convicting the 67-year-old Lee of forcing
Samsung SDS, a system integration unit of Samsung Group, to sell bonds with
warrants (BWs) to his son and daughters at a huge discount in 1999, incurring a
loss of 22.7 billion won for the Samsung company.
The court said Lee's jail term will be suspended for five years. In late July,
prosecutors demanded a six-year jail sentence for Lee.
The former chairman was indicted last year for causing Samsung SDS to lose 154
billion won in 1999 through bond deals, but the lower courts found him not guilty
in that case.
In their ruling, the courts stated that the statute of limitations had expired in
the Samsung SDS case as the amount of losses caused by the Lee family to the
company did not exceed 5 billion won. The lower courts estimated the appropriate
issuance price at 9,740 won per share, while the Lee family traded the bonds at
7,150 won in 1999.
The Supreme Court, however, ordered the lower courts in May to review the not
guilty verdict for Lee, saying the amount of loss incurred to the Samsung
affiliate should be recalculated.
Delivering the guilty verdict on Friday, the appellate court set the appropriate
market price of Samsung SDS's BWs at 14,230 won per share, extending the case's
statute of limitations to 10 years.
In its May ruling, the Supreme Court upheld the lower courts' not guilty verdict
for Lee on two separate charges of illegally transferring wealth and managerial
control of South Korea's top conglomerate to his only son, Jae-yong.
Lee had served as Samsung chairman for 20 years and stepped down from the group's
top management post in April 2008 after he was indicted for causing losses at
Samsung companies and for failing to pay taxes.
brk@yna.co.kr
(END)
