Court upholds Samsung verdict
A South Korean appeals court yesterday upheld the conviction of two Samsung executives who helped the chairman of South Korea's biggest group illicitly transfer control over the business empire to his son.
The Seoul High Court endorsed guilty verdicts against Huh Tae-hak and Park Ro-bin for selling a majority stake in the group's holding company to the son of group chairman Lee Kun-hee at a discount price.
A lower court in 2005 had sentenced Huh and Park, the former and current presidents of the holding firm Samsung Everland, to suspended jail terms of three and two years respectively for breach of duty.
Holding portraits of Samsung Chairman Lee Kun-hee (right) and his son, Managing Director Lee Jae-yong, protesters hold a mock funeral against the South Korean government's labor policy. |
The appeal court confirmed Huh's sentence and increased Park's suspended jail term to three years.
The case focuses on a 1996 transaction at Samsung Everland, which helped Lee Kun-hee pass control of the family-run group to his only son Lee Jae-yong.
Jae-Yong bought 1.25 million Samsung Everland shares at 7,700 won (now $8.2) per share - far lower than the market price at the time - via an issue of convertible bonds, prosecutors have said.
The appellate court said the accused had sold the bonds to the son at a "remarkably low price" and the shares should have cost 14,825 won or more.
It also said a board meeting in October 1996 that approved the bond sale was invalid because it failed to meet a quorum.
"It is clear that the accused have breached their official duty," said the court in a statement.
AFP
(China Daily 05/30/2007 page16)
