Lee Jae-yong, Vice Chairman of Samsung Electronics / Photo = Choi Hyuk, reporter Hankyung.com [email protected]
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Jaeyong Lee, Vice Chairman of Samsung Electronics (Photo) Resigns from the chairmanship of the Samsung Life Insurance Foundation, which he inherited from his father, former chairman Lee Kun-hee. This is because a two-year and six-month prison sentence was confirmed for the’Gukjeong Nongdan case’, resulting in disqualification as a foundation director.
Reasons for disqualification occurred due to the confirmation of imprisonment for Gukjeong Nongdan
According to Samsung Electronics on the 21st, the foundation is undergoing related procedures to change the position of vice chairman Lee Jae-yong. It is reported that the foundation will hold the board of directors next month and deal with the replacement agenda for vice chairman Lee Jae-yong.
The’Social Welfare Business Act’ stipulates that “a person who has been sentenced to a prison sentence of more than a safe and has not passed three years from the date the execution is terminated or exempted from execution” cannot become an executive, such as a director of a social welfare corporation. According to the law, Vice Chairman Lee Jae-yong cannot return to the Foundation for three years after expulsion. The Seoul Metropolitan Government is planning to notify the Foundation of this information through an official letter in the near future.
An official from the Seoul Metropolitan Government explained, “As a result of self-examination, it was concluded that the case of being sentenced to imprisonment and serving prison like Vice Chairman Lee Jae-yong is a reason for disqualification of executives under the Social Welfare Business Act.”
The foundation’s position is that “no decision has been made on the issue of hosting the board of directors or the appointment of the chairman.” Samsung Electronics said, “Because there was a reason for disqualification, it is not a director of course.”
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Samsung Electronics Vice Chairman Lee Jae-yong, who is suspicious of illegal management succession, is attending the Seoul Central District Court in Seocho-gu, Seoul on June 8 last year to receive an interrogation (warrant substantive examination) before being arrested.
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Seoul City to notify reasons for disqualification through official letter
The Samsung Life Insurance Public Interest Foundation, the largest public welfare foundation in Korea with assets of only trillions of won, is Samsung’s representative welfare foundation, established in 1982, and operates the Samsung Seoul Hospital and Samsung Noble County to conduct medical and elderly welfare projects.
Vice Chairman Lee Jae-yong took over the position of Chairman of the Foundation in May 2015 from former Chairman Lee Kun-hee, former Chairman of the Board. The appointment of the chairman at the time, which took place for the first year of former chairman Lee Kun-hee, was evaluated as a symbolic measure that formalized vice chairman Lee Jae-yong’s succession of management rights to the Samsung Group.
Vice Chairman Lee Jae-yong filled his first three-year term as Chairman of the Foundation and reappointed as Chairman in May 2018. Under the Social Welfare Business Act, the term of office for directors is set at 3 years, but there is no limit to the number of consecutive terms. In addition to the Samsung Life Insurance Public Interest Foundation, Samsung has four public interest foundations, including the Samsung Welfare Foundation, the Samsung Cultural Foundation, and the Hoam Foundation.
The chairman of the Samsung Welfare Foundation is chaired by former Samsung C&T President Lee Seo-hyun, Vice Chairman Lee Jae-yong’s younger brother, and former Prime Minister Kim Hwang-sik is also the chairman of the Samsung Cultural Foundation and Ho-Am Foundation.
Jo Jun-hyuk, reporter at Hankyung.com [email protected]
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