Samsung Electronics’ chairman Lee Sang-hoon has been found guilty of violating South Korea’s labour union laws and was sentenced to 18 months in prison, according to the Financial Times.
Prosecutors indicated that Lee, and 24 other former and current Samsung officials, used tactics to not allow union practices. This included threatening to slash wages and withdrawing business to subcontractors that are union-friendly, The Verge noted.
The Wall Street Journal indicated that this decision isn’t really going to affect Samsung’s investors. According to FT, however, it will put added pressure on the South Korean-based company to improve its practices and its culture within the company.
Source: Financial Times, Wall Street Journal, The Verge