Samsung related shares plunge after heir Jay Y Lee is sentenced to jail again
SINGAPORE — Shares of groups related to South Korean-conglomerate Samsung Group plunged on Monday after Samsung heir Jay. Y Lee was sentenced to two and a half years in jail by a South Korean court on Monday.
By Monday’s market close in South Korea, shares of industry heavyweight Samsung Electronics fell 3.41%. after dipping more than 4% earlier in the session.
Samsung C&T’s stock also saw heavy losses, and dropped 6.84%. Meanwhile, Samsung SDI declined 4.21% while Samsung Heavy Industries fell 2.74%. and Samsung Life Insurance slipped 4.96%.
Samsung related shares dragged down South Korea’s broader index, and the Kospi fell 2.33% by the close of the trading day.
“In this case, a company’s freedom and right to wealth were violated due to the abuse of power by the former president,” Lee’s lead attorney said in a statement given by Samsung Electronics, according to a CNBC translation.
The 52-year-old Samsung scion was unexpectedly freed from jail in 2018 after a South Korean appeals court suspended his prior jail sentence. He was previously charged with giving 29.8 billion Korean won (around $27 million) worth of bribes and promising to give more, Yonhap reported.
Former president Park recently had her 20-year prison sentence on graft charges upheld, according to Reuters.