Samsung Group

Prosecutors seek jail for Samsung's Lee in appeal

South Korean prosecutors asked for a seven-year prison term for Lee Kun Hee, the former chairman of Samsung Group, in an appeal trial for tax evasion and breach of fiduciary duty.

Prosecutors led by Cho Joon Woong also asked for a 350 billion won ($319 million) fine during a court hearing for Lee in Seoul today. The jail term and financial penalty are the same as prosecutors sought in the original trial in July, when a lower court handed Lee a three-year prison sentence, suspended for five years, and a 110 billion won fine.

Prosecutors appealed the lower court's ruling in which Lee, 66, was convicted of tax evasion while cleared of charges that he oversaw illegal trades designed to transfer control of Samsung to his son. Attorneys for Lee, who quit as chairman of the group in April, requested the appeal be dismissed.

Under Korean law, prosecutors and defense lawyers can build up their original case with new arguments and evidence at an appeal trial and the three-judge panel can overturn the original verdict or uphold it and change the sentence.

(Published by Bloomberg - September 10, 2008)