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Samsung lower amid bribery scandal

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Miguel A. Rodriguez
Miguel A. Rodriguez
20 January 2021
Samsung heir was sentenced to prison after found guilty of bribery, embezzlement

The week did not start on a high note for Samsung. The company's heir, Lee Jae Yong, was sentenced to two years and six months in prison.

Yong faces the retrial's consequences, including one of South Korea's former presidents – Park Geun-hye, regarding bribery and corruption. According to the high court's verdict, Yong "actively provided bribes and implicitly asked the president to use her power to help his smooth succession at the head of Samsung." Lee was found guilty of bribery, embezzlement, and concealment of criminal proceeds worth roughly $7.8 million.

Moreover, Samsung was accused of paying $37.7 million to two non-profit foundations in exchange for political support.

Yong's lawyers were quick to respond to the court's decision, stating that "in regrettable."

The ruling came in less than a week after Samsung released its latest phone – the Galaxy S21 family. The 5G phones come in three models: Galaxy S21, Galaxy S201+, and Galaxy S21 Ultra. The phones can currently be bought on pre-order and will hit the shelves on January 29.

Following the news, Samsung stock price lost more than 4%.

Sources: forbes.com, bbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.