A high court in South Korea has handed out a two years and six months prison term to Samsung heir Lee Jae Yong.
The bribery case, which is a retrial of an early one that involved ex-president Park Geun-hye saw also, her being jailed for bribery and corruption.
Lee has been the de facto head of Samsung Electronics since 2014.
The ruling is likely to have ramifications for the future of his role at the tech giant.
News of the sentence sent Samsung electronics shares more than 4% lower before they began to claw back some ground.
This setback will prevent him from making major decisions at the company and some experts believe there will be a leadership vacuum and hamper the company’s decision-making on future large-scale investments.
Lee assumed leadership of the company when his father Lee Kun- he was hospitalised following a heart attack in 2014.
The elder Lee died last year, leading to speculation that there would be a shake-up at Samsung as his heirs could be forced into asset sales or dividend payments to cover a massive inheritance tax bill.