The Samsung heir Lee Jae-yong was convicted of bribery today in a South Korean court pushing the company to rethink its prospects, said The Journal today.
The company will have a prolonged absence of leadership following this conviction, a situation that could impact the electronic giant’s future in the tough game.
Lee is the vice-chairman of the company but is the de facto head of the Samsung conglomerate.
His conviction, as a result of his trial in a corruption case that has gripped the country and helped bring down the previous government, puts the company in a crisis.
Lee Kun-hee, was incapacitated following a heart attack in 2014. The younger Mr. Lee has been detained since his arrest in February.
The Financial Times said in February this year his jailing – and subsequent conviction – imperils both the company and the country.
The Financial Times had said the arrest of the man leading South Korea’s largest conglomerate pushes the company to the precipice. Management will need to be restructured immediately because Samsung’s role in the South Korean economy is colossal.
Lee, also known as Jay Y Lee, was detained since February on a string of corruption charges including bribery, embezzlement and hiding assets overseas.
He was accused of giving donations worth 41 billion won ($36m; £29m) to non-profit foundations operated by Choi Soon-sil, a friend of South Korea’s former President Park Geun-hye, in return for political favours.