The third President was sentenced to jail for violating labor law

Seoul President


Electronics Co. The Committee determined that a violation of the Korean labor Union law, and was sentenced to 18 months in prison, the latest legal challenge, a global technology giant.

A Seoul court ruled on Tuesday

Lee Sang-hoon,

64, who served as Samsung Electronics the company’s chief financial officer before becoming Chairman of the Board two years ago, violated the labor law by destroying the Union’s activities in Samsung, in the recent years. Some 24 current and former Samsung officials and other personnel involved in the case also found guilty of similar charges.

This is the case largely focused on the efforts by Samsung officials, including Mr. Lee, the dismantling of labor Union in the company’s customer-service unit. The court convicted the Samsung officials on multiple allegations, including the collection of personal information in some Union members, such as their marital status, personal financial situation and mental health history.

Samsung Electronics declined to comment. Mr. Li is the legal representative did not comment. Samsung officials can ask the appellate court’s ruling.

Samsung, the world’s largest smartphone and memory chip maker, has been hampered by legal problems in recent years. The group’s de facto leader,

Lee Jae-yong

Who is no relation to Lee Sang-hoon,spent a year after bars after being convicted of bribery with a national scandal involving the South Korean President. He was released in February 2018.

Lae Jae yong’s case, it is not tied Tuesday’s ruling is being reviewed by an appeals court and a ruling is expected next year.

Samsung Electronics ‘ financial performance has suffered this year, global spending in the memory chip has been returned, exacerbated the US-China trade war. The company’s most recent to around three-quarters of operating profit from the semiconductor. Smartphone sales, one of Samsung’s cash cow, has been slow, because few consumers eager to buy the latest upgrade.

The latest legal Saga is impossible to brittle fracture of Samsung Electronics to investors after a string of other events, the focus is more on a potential rebound in the chip industry next year, said Steve Chung, an analyst at the CLSA brokerage in Seoul. “Samsung become immune to political noise”, Mr. Chung said.

Samsung Electronics shares have increased by about 2. 4% in Tuesday midday trading before, the court’s decision was announced. The company closed the day up 3. 7%and 1. 3%rise in South Korea the Korea Composite stock price index of the benchmark index.

Lee Sang-hoon of the prison threatened to destroy the company’s decision-making. As President of Samsung’s 10-person Board, Mr. Lee is responsible for the quarterly convening of Board meetings and review company financial statements before they are sent to shareholders to vote, among other duties. Samsung’s annual General meeting occurs every month.

The court’s decision brings the end of a multi-year investigation more than the Samsung deal and the trade unions can be traced back to 2013, when a member of Parliament disclosed the company’s internal document containing the tactics of the fight against labor Union activities.

The end of the investigation, no charges in 2015, but the recovery after the Prosecutor found the additional evidence, while out of another situation. In 2018, the Prosecutor indicted 32 people for alleged violations of the labor Union law.

The court on Tuesday also convicted and imprisoned another senior Samsung Electronics official, Kang Kyung-hun,Executive Vice-President. Currently the Executive Director at other Samsung affiliates,

Samsung brand Co.


Samsung C&T Corp.

Is also found guilty because they work for Samsung Electronics at the time. But the two officials, in order to avoid prison and probation.

Samsung C&T and Samsung card declined to comment.

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