South Korea appeals court frees Samsung heir

SEOUL (AFP/WSJ) – A South Korean appeals court on Monday upheld Samsung heir Lee Jae-Yong's bribery conviction but cut his prison sentence to a suspended term, ordering his immediate release after nearly a year behind bars.

Lee, vice chairman of Samsung Electronics, the world's biggest smartphone and memory chip maker, was convicted of bribery in connection with the sprawling corruption scandal that brought down former South Korean president Park Geun-Hye.

The Seoul High Court on Monday replaced a five-year jail sentence with a term of two years and six months, suspended for four years. Two other former Samsung officials were also given lower suspended sentences, allowing them to be released from jail.

The ruling comes almost a year since Lee, the vice chairman of Samsung Electronics Co., was first taken into custody after prosecutors accused him of receiving government favors in return for financial contributions to former President Park Geun-hye's confidante Choi Soon-sil. A final appeal can be made to the Supreme Court by both sides.

Monday's ruling may end a leadership vacuum at South Korea's biggest business empire, controlled by the Lee family through an intricate structure of cross-shareholdings, which has allowed them to exercise control over Samsung's key affiliates–mainly its crown jewel Samsung Electronics-with limited stakes. Mr. Lee has acted as Samsung's de facto leader since its chairman, his father, was incapacitated by a heart attack in 2014.

The case is expected to go to the Supreme Court, as prosecutors in December called for a 12-year jail term after Lee appealed.