SEOUL: South Korea's President Yoon Suk-yeol pardoned Samsung Electronics Vice Chairman Jay Y. Lee on Friday, with the justice ministry saying the business leader was needed to help overcome a "national economic crisis".
The pardon is largely symbolic, with Lee already out on parole after serving 18 months in jail for bribery in a scandal that led to massive protests and brought down then-President Park Geun-hye in 2017.
However, analysts said the pardon should mean Lee will be able to carry out business activities with fewer legal restrictions, and could herald some large investments from Samsung, the world's biggest smartphone and memory-chip maker.
"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 told a briefing.
Tech-and export-dependent South Korea, Asia's fourth-largest economy is grappling with soaring inflation, weakening demand, poor sentiment and slowing spending.
Lee, an heir of Samsung's founding family, welcomed the decision and vowed to work hard for the national economy "with continuous investment and job creation."
Also pardoned by the pro-business Yoon was Lotte Group chairman Shin Dong-bin, who was sentenced to a two-and-a-half-year prison sentence on charges of bribery, also related to Park.
In a statement, Lotte said Shin would also help in "overcoming the complex global crisis."
POLITICAL CRIMES
Park herself was pardoned late last year by her successor, liberal president Moon Jae-in, who struggled to follow through on campaign vows to clean up business and politics.
A survey conducted last month jointly by four pollsters showed that 77% of respondents favored pardoning the Samsung leader, despite the earlier protests.
"(That support) is apparently due to the current economic situation, but people also seem to have thought in part that Lee was somewhat in a position where he could not shrug off pressure from the former administration," said Eom Kyeong-young, a political commentator based in Seoul.
While business groups including the Korea Chamber of Commerce & Industry and Korea Enterprises Federation welcomed the pardon for Lee, civil rights groups criticized Yoon's pardons for businessmen.
"The Yoon Suk-yeol administration... is ultimately just aiming for a country only for the rich," People's Solidarity for Participatory Democracy said in a statement.
Another jailed former president, Lee Myung-bak, had been expected to be pardoned after Yoon raised the possibility in June, but was ultimately not on the list. He was arrested in 2018 and sentenced to 17 years in prison for corruption, embezzlement and bribery.
BACK IN BUSINESS
Analysts have long expected decisions on major projects and investments once Lee was reinstated, with company sources saying such decisions should only be made by Lee.
"This removes the employment restriction Lee was technically under," said Park Ju-gun, head of research firm Leaders Index.
"And projects that were being pursued by Samsung, such as major M&A or investments, these could be tied to the pardon."
Even before receiving the presidential pardon, Lee had returned to the limelight, appearing in May with President Yoon and U.S. President Joe Biden when they visited Samsung's Pyeongtaek chip production facilities.
He has also visited Europe in June to meet ASML Holding CEO Peter Wennink, discussing the adoption of key high-end chip equipment.
Last November, Samsung decided on Taylor, Texas as the site of a new $17 billion chip plant.
Top Samsung executives have hinted earlier this year at potential upcoming acquisition activity. Samsung Electronics has not conducted a high-profile deal since it completed its purchase of audio electronics maker Harman for $8 billion in 2017.
Although macroeconomic factors such as a demand downturn may weigh on investment decisions, Samsung has a huge war chest.
Samsung Electronics' cash balance increased slightly to 125 trillion won ($95.13 billion) as of end-June, from 111 trillion a year earlier.
While experts say Lee could now more freely participate in management, his legal woes persist due to an ongoing trial where he faces the risk of returning to jail if found guilty of charges of fraud and stock manipulation.
Shares in Samsung Electronics closed up 0.5% versus benchmark KOSPI's .KS11 0.2% rise. Lotte Corp 004990.KS shares were down 0.6%.
Reuters
Fri Aug 12 2022
Samsung Electronics Vice Chairman Jay Y. Lee leaves a court in Seoul, South Korea, August 12, 2022. - Yonhap/via REUTERS
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.