Lee was involved in a bribery scandal which also saw the former president of South Korea, Park Geun-hye impeached as she was found guilty.
Reports had it that Lee is the third richest man in South Korea and a direct heir to the global electronics maker Samsung. The family company also has stakes in businesses that range from pharmaceuticals to ship building.
Lee, who was detained in February, has denied all charges and his lawyers are expected to appeal the case to the country's Supreme Court.
The charges levied against Lee mention a donation worth up to 41bn won ( £29m) to a non-profit organisation that was run by Choi Soon-sil, who is a friend of the former president. Lee, in return, was expecting political favours including the merger of two Samsung affiliated businesses that would have reportedly increased his strength within the company in 2015.
The merger went ahead after approval from the National Pension Fund in spite of the fact that it was reportedly opposed by several shareholders at the time.
Lee, however, has continued to insist that the payments to the non-profit happened without his knowledge. The money had reportedly moved from Lee to four establishments under Choi's control. Park allegedly gave Choi access to government documents for which she had no clearance.
Samsung has not denied making donations to Choi's non-profits, it was reported.
Samsung is a family owned and controlled conglomerate called a chaebol that was integral to the growth and development of South Korea's industrial prowess. The chaebol companies are seen as strong and powerful groups that dominate the market, according to a report by the NYT. The top 10 largest chaebol's revenue matches about 80% of South Korea's GDP.
Meanwhile, Samsung's share price has dropped by 1% since the judgement.
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