Tag: Lee Jae-yong

It looks like there will not be any more jail time for Samsung Chairman Lee Jae-yong:

A Seoul court acquitted Samsung Electronics Co. Chairman Lee Jae-yong on Monday in connection with the controversial 2015 merger of two Samsung affiliates allegedly conducted to help him take over control of South Korea’s biggest conglomerate.

The Seoul Central District Court delivered the not-guilty sentence for Lee, three years and five months after he was indicted on charges of involvement in market irregularities in the merger of Cheil Industries Inc. and Samsung C&T Corp. to solidify his managerial control of the group at a lower cost.

Lee was charged with stock price rigging, breach of trust and accounting fraud in the course of the controversial 2015 merger, where three Samsung C&T shares were offered for one Cheil share. 

The merger was seen as crucial to Lee’s succession as the heir of the family-controlled group, as his father, Lee Kun-hee, had suffered a heart attack the previous year.

Yonhap

You can read more at the link.

Lee got caught up in a political prosecution of former President Park Geun-hye, so everyone kind of knew he would eventually get released early and now it has happened:

The justice ministry said Monday it will release jailed Samsung heir Lee Jae-yong on parole later this week, a decision fiercely protested by civic groups and welcomed by Samsung Group and other business leaders.

The vice chairman of Samsung Electronics Co. has been serving time since he was sentenced to 2 1/2 years in prison by the Seoul High Court on Jan. 18 in a retrial of a bribery case involving former President Park Geun-hye. (……)

The ministry considered “the country’s economic situation and the conditions of the global economy amid the prolonged COVID-19 pandemic” as factors behind the decision, Park said in a briefing.

Yonhap

You can read more at the link.

It will be interesting to see if Lee has his sentenced reduced for facilitating a vaccine deal that now shields the Moon administration from the heavy criticism they had been receiving:

After South Korea closed a deal with Pfizer to obtain additional doses of its COVID-19 vaccine, Samsung Electronics’ de facto chief, Lee Jae-yong, is receiving much attention in local media for his reported role in facilitating talks between the two sides. 

Seoul announced Friday that it had secured enough additional vaccine for 20 million people in a deal that soothed public worries over a shortage. Adding to those worries were the reported side effects associated with the AstraZeneca jabs — the mainstay of the country’s inoculation campaign. 

According to the DongA Ilbo and multiple other media outlets, the vice chairman of Samsung, in prison since January for bribing former President Park Geun-hye, acted as a bridge between the Korean government and Pfizer. 

While the Moon Jae-in government had no channels with the top leadership of the US vaccine developer until early December, Lee used his personal network and sought the help of Shantanu Narayen, chairman of the US computer software company Adobe, who was an independent director of Pfizer. 

Korea Herald

You can read more at the link, but for those that have followed Lee Jae-yong’s legal issues he was essentially jailed because he was caught in the middle of the political battles between the Korean left and right. He was jailed because it was alleged that former President Park made demands to Lee that Samsung give money to a sport agency to sponsor her friend’s daughter’s Olympic equestrian training.  In return the Park administration was alleged to have smothered over Lee’s acquisition of Samsung from his then ailing father.

I have no idea if Lee is guilty of what he is accused of, but what I do know is that Korea is a rule by law nation instead of a rule of law nation. If powers that be want him guilty they can make it happen. The same powers that be can find a way to get him released as well. We will see if that happens in the coming months because I doubt they will announce it right after this vaccine deal.

This update on the Lee Jae-yong legal saga makes me wonder what was done behind the scenes by Samsung to influence this panel’s decision?:

Samsung Group heir apparent Lee Jae-yong was granted a respite Friday in a legal battle over his alleged role in a controversial merger and fraudulent accounting, as an independent panel of experts concluded that prosecutors should not indict him. 

However, Samsung is still cautious as Lee’s legal battle is not over.

After hours of discussion, the panel, made up of civil activists, legal experts and others, concurred that the investigation into Lee unwarranted, giving a breather to Samsung and its de facto leader.

“We respect the decision from the committee,” Lee’s lawyers said in a release. “We thank the committee for giving Lee and Samsung a chance to focus on their business activities and overcome the current crisis.”

Early this month, a few days ahead of a court ruling over his detention, Lee, vice chairman at Samsung Electronics Co., requested the panel review whether prosecutors’ investigation is fair, seeking public support for the high-stake legal battle.

The independent panel was introduced two years ago to enhance neutrality and fairness of prosecutors’ probes into cases that are of great public interest. In a nutshell, the panel was created to rein in prosecutors’ powers.

Yonhap

You can read more at the link. I have no idea if Lee is guilty of what he is accused of, but what I do know is that Korea is a rule by law nation instead of a rule of law nation. If powers that be want him guilty they can likely make it happen unless Lee gives them what they want.

Here is the latest on the Korean government’s attempt to put Samsung heir Lee Jae-yong behind bars:

 A court in Seoul early Tuesday refused to issue an arrest warrant for Samsung Group’s de facto leader, Lee Jae-yong, who are under investigation over succession-related allegations.

The Seoul Central District Court turned down the prosecution’s request to put Lee, vice chairman of Samsung Electronics, behind bars, citing that there is not sufficient probable cause for his arrest.

Two other Samsung executives, Choi Gee-sung and Kim Jong-joong, from the group’s now-disbanded control tower, the Future Strategy Office, also avoided arrest.

“There was insufficient explanation on the need to arrest the defendants against the principle of trial without detention,” Judge Won Jung-sook said.

Yonhap

You can read more at the link,

Notice that if the media speculates or even reports facts about the Moon administration they go to jail, but if the media speculates about Lee Jae-yong it is perfectly acceptable:

Samsung Electronics on Sunday appealed to the press not to release “groundless” or “speculative” reports centering on Samsung’s de facto leader Lee Jae-yong, who is being questioned over possible legal violations in the controversial 2015 merger of two affiliates and an accounting fraud to cement his control over the group.

The appeal, which also highlighted Samsung’s contribution to the Korean economy, came a day before the court holds a hearing Monday to decide whether to issue the arrest warrant. Prosecutors on Thursday requested a warrant to detain Lee after he, along with other Samsung executives, requested that prosecutors convene a panel of outside experts to decide the validity of the investigation.  

“Samsung is in a crisis,” said the statement Sunday. “Recently, press reports that haven’t been confirmed or those based on suspicious sources continue to be released. Some of them are based on the premise Lee is guilty. Please refrain from immoderate reports that aren’t based on the truth. The damage imposed on Samsung, its executives and staff members from those reports is not small.”

Joong Ang Ilbo

You can read more at the link. I have no idea if Lee is guilty of what he is accused of, but what I do know is that Korea is a rule by law nation instead of a rule of law nation. If powers that be want him guilty they can likely make it happen unless Lee gives them what they want.

The only conviction to stick to Lee Jae-yong was sponsoring equestrian training for Choi Soon-sil’s daughter:

Samsung Electronics Vice Chairman Lee Jae-yong was released Monday after an appellate court handed him a suspended sentence dismissing most of the key charges against him in a bribery and corruption scandal that led to the ouster of former President Park Geun-hye last year.

The Seoul High Court sentenced Lee to 2 1/2 years in prison with a stay of execution for four years. He was immediately freed from a nearly yearlong incarceration.

Two former group executives were also released on suspended sentences. They were given four-year jail terms by the lower court.

Lee, 50, was arrested on Feb. 17, 2017 on five charges, including bribery, embezzlement and hiding assets overseas.

A lower court sentenced him to five years in prison, on Aug. 25, for giving 8.8 billion won (US$8.1 million) in bribes to Park and her confidante, Choi Soon-sil, in return for government backing of the merger of two key Samsung units, a process that was deemed vital to tighten Lee’s control of South Korea’s biggest conglomerate. The prosecution had demanded 12 years in prison for Lee.

But the appeals court acknowledged as bribes only some 3.6 billion won which Samsung sent to Choi’s German-based firm to sponsor the equestrian training of her daughter, Chung Yoo-ra.

The court found Lee “passively” complied with Park’s request to sponsor the former dressage rider after he was apparently intimidated by Park and Choi.  [Yonhap]

Here is the strangest thing about the court ruling:

But the appeals court acknowledged as bribes only some 3.6 billion won which Samsung sent to Choi’s German-based firm to sponsor the equestrian training of her daughter, Chung Yoo-ra.

The court found Lee “passively” complied with Park’s request to sponsor the former dressage rider after he was apparently intimidated by Park and Choi.

What did former President Park tell him that was so intimidating that is what I want to know?

I think this conviction means that former President Park will likely get convicted as well for corruption:

A Seoul court sentenced Samsung Electronics Vice Chairman Lee Jae-yong to five years in prison Friday, finding him guilty of bribery, embezzlement and other charges in a massive corruption scandal that led to the ouster of former President Park Geun-hye.

The Seoul Central District Court handed down the verdict, convicting Lee of involvement in Samsung’s provision of 7.2 billion won (US$6.38 million) in bribes for the equestrian training of the daughter of Park’s longtime friend and confidante Choi Soon-sil.

Prosecutors had demanded a 12-year jail term for Lee on charges of offering or pledging 43.3 billion won of bribes to win the government’s blessing for a merger of two Samsung units under terms designed to increase his control over the entire Samsung empire so as to cement a power transfer from his ailing father Lee Kun-hee.

“The crux of this case is close collusion between political and capital powers,” the court said in the verdict. “It appears to be difficult for the people to recover from disappointment in that collusive ties between the president and a large conglomerate existed not in the past, but in the present.”  [Yonhap]

You can read more at the link, but the article says that former President Park made demands to Lee that Samsung give money to Choi Soon-sil so her daughter could receive equestrian training.  Park is an idiot if that is in fact what happened.

Anyway it will be interesting to see how the appeals process works.  I would not be surprised that after this blows over that the appeal quietly happens and Lee receives a suspended sentence and is out of jail.