Lee Kun-Hee, who served as a chairman of Samsung Group has been convicted of doing illegal bond transactions that caused massive loss to Samsung’s SDS subsidiary. Kun-Hee is sentenced to a three-year prison suspended term and has to pay a fine of 110 billion won (USD89.2 million).
In 1999, on direction of Kun-Hee, the SDS unit had to sell bonds with warrants to his only son Lee Jae-Yong at a price lower than the prevailing market rates so that the management control goes to his son.
Though the lower court did not find Kun-Hee guilty of this action, Supreme Court upheld the decision and sent it to the High Court for reconsideration.
In the past, Lee has been convicted for failing to pay taxes and received suspended jail sentence.