Wednesday, July 23, 2008

Samsung chief makes legal appeal

Chairman of South Korean firm Samsung, Lee Kun-hee, has filed an appeal over his suspended prison sentence and multi million dollar fine for tax evasion.

The charges followed a three-month investigation into alleged corruption at South Korea's biggest conglomerate.

Prosecutors have also appealed for a heavier sentence for Lee, who led South Korea's biggest business for 20 years.

Lee, 66, quit Samsung in April, less than a week after he was charged with tax evasion and breach of trust.

He was convicted this month for not paying about 47bn won ($46m; £23m) in taxes.

The court handed him a fine of 110bn won, but did not send him to jail even though tax evasion carries a potential life sentence.

But it found there was not enough evidence to convict him for the breach of trust charges.

At the time of his arrest, prosecutors said Samsung had a lot of "structural problems", including "illicit transfer of management control", in relation to transferring control of the company to his son.

Mr Lee, himself the son of the founder of Samsung, took over as head of the business in 1987, and it has since grown to become the world's largest producer of memory chips.

Samsung, which has a global workfore of 254,000, is best-known for its electronics unit, but it is also one of the world's largest shipbuilders and one of South Korea's leading companies.


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