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Sun 16 Aug 2009 12:05 PM

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Ex-Samsung chairman fined for illegal bond trade

Ex-chairman fined $89 million and given suspended prison sentence for illegal bond trade

Ex-Samsung chairman fined for illegal bond trade
Lee Kun-hee was given a three-year prison sentence, suspended for five years, for his part in the bond trade. (Getty Images).

The ex-chairman of Samsung has been fined 110 billion Korean won, ($89m) and given a three-year suspended prison sentence for his part in an illegal bond deal.

Lee Kun-hee was found guilty of selling the bonds below fair market prices to his only son, Jae-yong.

The sale, which valued the bonds at around half their market value, was believed to be part of an attempt to transfer control of the conglomerate to his son in 1999.

Samsung reported a loss of 22.7 billion won ($18.3m) from the sale.

Lee had already
stepped down

from the chairmanship of Samung last year, after being indicted for breach of trust and tax evasion.

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