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Samsung scandal: Who is Lee Jae-yong? Samsung scandal: Who is Lee Jae-yong?
(6 months later)
Six months ago, simply finding a photograph of Lee Jae-yong was tricky. A year ago, simply finding a photograph of Lee Jae-yong was tricky.
He had just been elected to the board at Samsung Electronics, and one of the few images we could trace showed him as a younger man, smiling, with a name badge clipped to a preppy lilac V-neck sweater. He had just been elected to the board at Samsung Electronics, and one of the few images available showed him as a younger man, smiling, with a name badge clipped to a lilac V-neck sweater.
There are no shortages of pictures now, but smiles and upbeat knitwear are in limited supply. In one striking image, he wears handcuffs, flanked by police. There is no shortage of pictures now, but smiles and upbeat knitwear are in limited supply. In the latest images, he is handcuffed, flanked by police as he leaves court for prison.
That is because, while six months ago the biggest charge against Mr Lee was that he had climbed the Samsung ranks because of who he was rather than his abilities, the accusations he faces now are far more serious. A year ago the biggest charge against Lee was that he had risen through the Samsung ranks because of who he was rather than his abilities. But he has since faced far more serious allegations that have resulted in a five-year jail term.
Who is Lee Jae-yong?Who is Lee Jae-yong?
The 48-year-old, also known as Jay Y Lee, is the son of Lee Kun-hee, chairman of Samsung Group, Korea's largest conglomerate. He is also the grandson of Samsung founder Lee Byung-chul. The 49-year-old, also known as Jay Y Lee, is the son of Lee Kun-hee, chairman of Samsung Group, Korea's largest conglomerate. He is also the grandson of Samsung founder Lee Byung-chul.
Studying a degree in Seoul before completing a doctorate at Harvard Business School, he has been groomed to take over the firm. With a degree from South Korea's top university and a doctorate from Harvard Business School, he has been groomed to take over the family firm.
He became a Samsung president in 2009 and in 2013 was made vice-chairman of Samsung Electronics, the division which makes gadgets from smartphones and televisions to cameras and hard drives.He became a Samsung president in 2009 and in 2013 was made vice-chairman of Samsung Electronics, the division which makes gadgets from smartphones and televisions to cameras and hard drives.
But since Mr Lee's father suffered a heart attack in 2014, he has been considered de facto boss of the entire Samsung group. But since Lee's father suffered a heart attack in 2014, he has been considered de facto boss of the entire Samsung group.
Forbes ranks the divorced father-of-two as the 40th most powerful person in the world, with a net worth of almost $6bn (£4.9bn).Forbes ranks the divorced father-of-two as the 40th most powerful person in the world, with a net worth of almost $6bn (£4.9bn).
What is he accused of? What was he accused of?
In February 2017, Lee Jae-yong was arrested and then charged over his alleged role in a political and corporate scandal, linked to South Korea's impeached president, Park Geun-hye. In February 2017, Lee Jae-yong was arrested and then charged over his alleged role in a political and corporate scandal linked to South Korea's then president, Park Geun-hye.
He is is the most high-profile figure arrested in the investigation. Charges against Mr Lee - who denies wrongdoing - include bribery, embezzlement, hiding assets overseas and perjury. Charges against Lee included bribery, embezzlement, hiding assets overseas and perjury.
Samsung is accused of paying 43bn won ($36.4m; £30.3m) to two non-profit foundations operated by Choi Soon-sil, a friend of Ms Park, in exchange for political support. Samsung was accused of paying 43bn won ($36.4m; £30.3m) to two non-profit foundations operated by Choi Soon-sil, a friend of Ms Park, in exchange for political support.
Those favours are alleged to include backing for a controversial Samsung merger which paved the way for Mr Lee to become eventual head of the conglomerate, a deal that needed support from the national pension fund. More specifically, the favours were alleged to include backing for a controversial Samsung merger which paved the way for Lee to become eventual head of the conglomerate, a deal that needed support from the government-run national pension fund.
At a parliamentary hearing in December last year, Mr Lee admitted making donations but denied Samsung wanted anything in return. It is a stance the company has since repeated. Lee denied the charges. He admitted making donations but denied Samsung wanted anything in return. But in August 2017 a court convicted him of the charges and sent him to prison for five years.
He also confirmed the firm separately gave a horse and several million dollars to help the equestrian career of Ms Choi's daughter.
Mr Lee is being charged along with four other Samsung executives - three of who have since resigned.
If convicted he could face up to 20 years in prison.
What does this mean for Samsung?What does this mean for Samsung?
Samsung is hugely important to the South Korean economy, with sales equivalent to about a fifth of the country's GDP. Lawyers for Lee say they will appeal, and in the past top executives jailed in South Korea have received presidential pardons. But this is unlikely in this case - Ms Park was impeached and removed from power and is behind bars as her corruption trial takes place.
It is what is known in a chaebol, a term specific to the country which refers to large family-owned conglomerates that typically have global operations. Others include LG, Lotte and Hyundai. New President Moon Jae-in has promised a cleaner administration and an end to special treatment for the business elite who run the chaebol, family-run companies crucial to the national economy.
Experts on these family businesses say Samsung's top boss has traditionally played a passive role in day-to-day operations. Samsung has sales equivalent to about a fifth of the country's GDP. To date it has appeared unaffected by Lee's absence, with Samsung Electronics posting record profits this quarter.
Given Mr Lee was only recently elevated to the group's board, his arrest and subsequent court case should have limited impact on business decisions made at the firm. It is not clear who will stand in for Lee. But experts on the chaebol say Samsung's top boss has traditionally played a passive role in day-to-day operations, and in court Lee described his knowledge of group operations as "limited", saying he was still learning.
But it will do nothing for the company's reputation, already smarting from the botched recall, re-release and eventual scrapping of its flagship smartphone, the Galaxy Note 7.