Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Samsung scion fights back as legal appeal begins

Published 10/12/2017, 06:37 AM
Updated 10/12/2017, 06:37 AM
© Reuters. Samsung Electronics Vice Chairman, Jay Y. Lee, arrives at a court in Seoul

By Joyce Lee

SEOUL (Reuters) - The heir to South Korea's Samsung Group, convicted of bribing the country's former president, appeared in a packed court on Thursday for the first day of arguments in the appeal of his five-year jail term for corruption.

The 49-year-old Jay Y. Lee was convicted by a lower court in August of bribing Park Geun-hye, who was dismissed as president in March.

The court decided the bribe helped Lee strengthen his control of the crown jewel in the conglomerate, Samsung Electronics (KS:005930), one of the world's biggest technology companies.

The appellate court hearing the appeal is likely to try to rule on the case by next February, legal experts said. Whichever side loses could take the case to the Supreme Court, the final court of appeal in South Korea.

Lee's presence marked his first public appearance since the August ruling. He did not speak during the proceedings other than giving his birth date and address.

The lower court in August had ruled that while Lee never asked for Park's help directly, the fact that a 2015 merger of two Samsung affiliates did help cement Lee's control over Samsung Electronics "implied" he was asking for the president's help to strengthen his control of the firm.

Lee, sitting mostly expressionless in a dark suit without tie, listened to hours-long PowerPoint presentations by both sides arguing over the lower court's logic that Lee's actions "implied" solicitation for help from Park by providing financial support for Park's close friend and confidante Choi Soon-sil.

On Thursday, the defense strongly challenged that logic.

"In order for implied solicitation to exist, there needed to have been a level of wordless understanding between Lee and the former president that transcended speaking," said Lee In-jae, Jay Y. Lee's lead counsel.

The prosecution, which has lodged a cross-appeal against the lower court ruling that found Lee innocent on some charges, said the court's decision to not acknowledge explicit solicitation for Park's help from Samsung despite the evidence found "did not make sense".

DEFENSE FIGHTS BACK

The defense, which spent much of its time during the initial trial refuting the prosecution's individual charges, said it will focus on a few key arguments in the appeal - including whether there was in fact an "ordinary type of bribery" as defined under South Korean law, which says only civil servants come under the statute.

Park's friend Choi was not a civil servant.

The lower court found that Samsung's financial support of 7.2 billion won ($6.27 million) to sponsor the equestrian career of Choi's daughter constituted an ordinary type of bribery, as "it can be considered the same as she (Park) herself receiving it."

The defense is expected to strongly challenge this by saying that the prosecution, on whom the burden of proof lies, has not proved collusion between Park and Choi.

© Reuters. Samsung Electronics Vice Chairman, Jay Y. Lee, arrives at a court in Seoul

The appeal hearing continues on Oct 19.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.