Samsung Electronics chairman Lee Kun-hee did not lodge an appeal by the due date against the latest high court ruling that found him guilty of malpractices carried out to make his son's takeover of the conglomerate easier, industry and court officials said Monday.

South Korea's richest man showed no signs of filing an appeal at the Daegu District High Court, which was due on Sept. 12 if he had decided to appeal. It is expected he will now most likely pay the 13 billion won (US$11.6 million) settlement.

On Aug. 22, the high court southeast of Seoul upheld a lower court ruling that Lee inflicted losses on Samsung Group's textile unit in an apparent bid to carry out favors for his son, Jay-yong, to help him succeed Lee as head of the company.

The court also ordered chairman Lee to pay 13 billion won in compensation, ruling in favor of three minority shareholders of Cheil Industries Inc., Samsung Group's textile arm.

The three sued the chairman in 2006, claiming that Lee instructed the textile company to refrain from buying convertible bonds (CB) of Samsung Group's de facto holding company, Samsung Everland Inc., so he could transfer control of the group to his son.

The younger Lee won control of Everland after he bought the closely held company's CBs in 1996.

The lawsuit by the three retail investors was pursued with the help of Jang Ha-sung, a professor and a strong proponent of shareholder rights in South Korea.

Chairman Lee had lodged an appeal after the first court ruling, which found the transfer of the bonds to Jay-yong was a clear attempt at handing the management over while evading taxes, and a breach of duty in that it inhibited Cheil from bond purchases either in an explicit or a tacit way.

In May 2009, the Supreme Court upheld a not-guilty verdict for Lee on charges of illegally transferring management control by selling the CBs to his son at below-market prices. (Yonhap News)