South Korea: Samsung boss receives presidential pardon
South Korea’s President Yoon Suk-yeol pardoned Samsung Electronics Vice Chairman Jay Y. Lee on Friday, with South Korea’s Justice Ministry saying the enterprise chief was wanted to assist overcome a “national economic crisis”.
The pardon is essentially symbolic, with Lee already out on parole after serving 18 months in jail for bribery regarding his time main the world’s largest smartphone and memory-chip maker.
However, it ought to imply Lee will be capable of perform enterprise actions extra freely and will herald some huge strikes from Samsung, analysts stated.
“With urgent needs to overcome the national economic crisis, we carefully selected economic leaders who lead the national growth engine through active technology investment and job creation to be pardoned,” Justice Minister Han Dong Hoon informed a briefing.
Lee, a scion of Samsung’s founding household, welcomed the choice and vowed to work exhausting for the nationwide financial system, Yonhap information company reported.
Also pardoned by pro-business President Yoon was Lotte Group chairman Shin Dong-bin, who was sentenced to a two-and-a-half-year jail sentence on fees of bribery.
“We sincerely thank the government’s and people’s decision to grant pardon, and Chairman Shin Dong-bin and staff members at Lotte will contribute to overcoming the complex global crisis,” Lotte stated in a press release.
Back in enterprise
Even earlier than receiving the presidential pardon, Lee had returned to the limelight, showing in May with President Yoon and US President Joe Biden after they visited Samsung’s Pyeongtaek chip manufacturing amenities.
He has additionally visited Europe in June to fulfill ASML Holding NV CEO Peter Wennink, discussing the adoption of key high-end chip gear.
Analysts have lengthy anticipated choices on main M&A tasks and investments as soon as Lee was reinstated, with firm sources saying such choices ought to solely be made by Lee.
“This removes the employment restriction Lee was technically under,” stated Park Ju-gun, head of analysis agency Leaders Index. “And projects that were being pursued by Samsung, such as major M&A or investments, these could be tied to the pardon. There’s a high chance that announcements will be made going forward.”
Last November, Samsung selected Taylor, Texas as the location of a brand new $17 billion chip plant.
While consultants say Lee may now extra freely take part in administration, his authorized dangers nonetheless persist as a result of an ongoing trial the place he faces fees of fraud and inventory manipulation.
“With his trial, Lee could face a fresh jail term if convicted. However, the presidential pardon gives him some flexibility to handle big management issues for now,” stated Lee Kyungmook, a professor at Seoul National University’s Graduate School of Business.
Top Samsung executives have hinted earlier this yr at potential upcoming acquisition exercise. Samsung Electronics has not carried out a high-profile deal because it accomplished its buy of audio electronics maker Harman for $8 billion in 2017
Although macroeconomic elements corresponding to a requirement downturn might weigh on funding choices, Samsung has an enormous struggle chest.
Samsung Electronics’ money steadiness elevated barely to 125 trillion gained ($95.13 billion) as of end-June, from 111 trillion a yr earlier. Shares in Samsung Electronics had been buying and selling up 1% versus benchmark KOSPI’s 0.1% rise. Lotte Corp shares had been down 0.8%.
