The prison sentence for a Samsung heir could mean trouble for the company.
Business management and succession is no simple task.
But it could be made more difficult.
According to a recent USA Today article titled “Samsung heir sentenced to 5 years prison by South Korea court,” Lee Jae-yong made things far more complicated for his family business.
How so?
He got sentenced to five years in prison by the Seoul Central District Court.
Why?
It is quite the list.
- Embezzlement
- Concealing profits
- Hiding assets overseas
- Perjury
- Bribes
Bribes?
Yes.
Bribes.
He was found guilty of offering $28 million to friend Choi Soon-sil and former president Park Geun-hye.
The reason?
He wanted government support of a merger to increase his control and power within Samsung after his father suffered a heart attack in 2014.
Lee continues to claim innocence and instead places the blame on other corporate executives.
The company claims the merger was to help provide better benefits for employees.
The court rejected this claim.
What about those who took the bribes?
Choi and Park are also under investigation.
The country of South Korea has a vested interest in the business, to include the succession planning and management of Samsung.
Why exactly?
Samsung accounts for one-fifth of exports from South Korea.
Although you may not have corrupt children, thorough succession planning is essential if you own a family business.
To create a plan best for you circumstances, work with an experienced estate planning attorney.
So, how do you find an "experienced" estate planning attorney?
First, ask around. Friends, family and other professional advisors are trustworthy sources.
Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").
Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.
How?
Two helpful online resources are just a mouse click away to assist with your due diligence: Avvo.com and Lawyers.com.
Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.
In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: USA Today (August 25, 2017) “Samsung heir sentenced to 5 years prison by South Korea court”
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