Samsung Electronics Vice Chairman Lee Jae-yong accepted the sentence of two years and six months in prison for bribery and other charges. On the morning of the morning of the 25th, Lee In-Jae, a lawyer at the Pacific Law Firm who served as a defense for Lee, said, “Lee humbledly accepted the ruling and decided not to appeal again.” Vice-Chairman Lee, who was arrested in court on the 18th, was able to appeal again until this day.
Park Young-soo’s special inspection team also decided not to reapply. The special prosecutor said, “We decided not to reappraise it because it was determined that it was in accordance with the ruling of the Supreme Court’s consensus.” It does not correspond to the reason.”
Samsung Electronics Vice Chairman Lee Jae-yong is present at a hearing on the remand of the ruling court on the afternoon of the 18th at the Seoul High Court in Seocho-gu, Seoul. On this day, Vice Chairman Lee was arrested. Reporter Woo Sang-jo
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Judging that “there is no real profit”
– It can be interpreted that the reason that Vice Chairman Lee gave up his re-appeal is that he judged’there is nothing to gain’. This is because there is no room for adjustment of the sentence as it has been judged by the Supreme Court. Under the Criminal Procedure Act, the imprisonment of 2 years and 6 months is also considered a reason that does not qualify for re-appeal. It can be interpreted as clearing the will of’compliance management’ instead of a re-appeal that has no practical benefit. Vice-Chairman Lee stressed, “We will continue to support the activities of the Samsung Compliance and Judicial Council” in his first prison message on the 21st, three days after the reincarnation.
Vice-Chairman Lee served for about a year from February 2017 to February 2018. You only need to live for 1 year and 6 months. A business official who requested anonymity said, “If you are subject to parole, you can fill two-thirds of the sentenced sentence (Vice Chairman Lee), if you serve for about eight months, you will be subject to parole. Said.
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Jaeyong Lee’s trial journal. Graphic = Kim Eun-kyo [email protected]
– Samsung is expected to respond in a similar way as it suffered from the’total gap’ for one year in 2017. Since the dissolution of the group in 2017, Samsung has been self-managing by affiliates. There is also a project support TF called’mini control tower’ by business division. A senior Samsung official said, “This is not the time to change the organization, so the focus will be on maintaining the current situation.”
The problem is large investments. In 2017, Samsung conducted emergency management in a way that daily work was decided by the top management of its affiliates, and important matters were’reported in prison’ to Vice Chairman Lee. However, as the old case has been confirmed, Vice Chairman Lee may be dismissed from the executive. This means that’outdoor management’ itself is difficult.
According to the Act on Aggravated Punishment for Specific Economic Crimes, Vice-Chairman Lee is not allowed to serve at Samsung Electronics for five years after the execution of the sentence, including the period of arrest, has ended. However, there are some claims that this is irrelevant to the restrictions on employment because Vice Chairman Lee left his position as a registered director and worked without pay.
In this regard, it is expected that there will be a recommendation from the Samsung Compliance Committee. On the 26th of this month, the Compliance Committee will hold a meeting with representatives of 7 contracting companies including Samsung Electronics. It is expected that related content will be discussed on this day.
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Vice Chairman Lee Jae-yong Graphic image of how the court judgment on bribery has changed. Reporter Cha Jun-hong
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On the 26th, the compliance committee’controversy over dismissal of the vice chairman’ seems to be discussed
– Even if Vice Chairman Lee is not dismissed, it is not easy to decide to manage a large-scale investment that would cost tens of trillions of won. There are concerns that there may be a disruption in the establishment of the foundry (consigned production) production line at the Austin Semiconductor Plant in the US or the construction of the P3 line (system semiconductor) of Samsung Electronics in Pyeongtaek, Gyeonggi-do. It is an investment that requires 10 trillion won and 30 trillion won respectively.
Visiting hours for Vice Chairman Lee and Samsung executives are limited to 10 minutes per day. It is virtually difficult to decide whether to invest through the review and discussion of related data with the management at this time. Vice-Chairman Lee, who is imprisoned in the Seoul Detention Center, is currently in quarantine after completing the Corona 19 test. If you follow the guidelines, you can visit on the 15th of the month after 4 weeks after the test.
Another trial remains. It is because a trial is in progress on allegations of illegal succession of management rights. In November 2018, the Securities and Futures Commission under the Financial Services Commission conducted an investigation into Samsung Biologics’ fraudulent accounting for more than a year, and the prosecution indicted Lee and others for violating the Capital Markets Act. The first trial trial has been underway since October last year.
Seoul National University Business School Professor Lee Kyung-mook said, “We faced a crisis as there was a risk that foreign investors who judged that there was a problem with the governance structure of Samsung Electronics, including semiconductors, had the risk of stopping investment.”
Reporter Choi Hyun-joo [email protected]
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