Samsung’s South Korean billionaire heir was pardoned by the president after his prison sentence on corruption charges so he can help deal with the “national economic crisis”.
Lee Jae-yong, 54, vice chairman of Samsung Electronics, is the latest person to be pardoned by the president, continuing South Korea’s long tradition of freeing business leaders convicted of corruption on economic grounds.
He was convicted of bribery and embezzlement in January last year, but Justice Minister Han Dong-hoon said he was “rehired” to help deal with the economic crisis.
According to Forbes, Lee has a net worth of $7.9 billion. The pardon is largely symbolic as he was paroled back in August 2021 after serving 18 months in prison for bribery, just over half of his original sentence.
The scandal sparked widespread protests and brought down then-President Park Geun-hye in 2017.
The pardon, which he received on Friday, will allow him to return fully to work and lift a five-year post-prison employment restriction.
Lee Jae-yong, 54, the vice chairman of Samsung Electronics, who is due to leave court in 2021, is the youngest person to be pardoned by the president, continuing South Korea’s long tradition of freeing business leaders convicted of corruption on economic grounds
The pardon is largely symbolic as he was paroled back in August 2021 after serving 18 months in prison for bribery, just over half of his original sentence
In addition to Lee, three other high-profile businessmen have been pardoned, including Lotte Group chairman Shin Dong-bin, who was sentenced to two and a half years of probation in a 2018 bribery case.
A statement from the Justice Department said: “Due to the global economic crisis, the dynamism and vitality of the national economy have deteriorated, and there are fears that the economic downturn will continue.”
The statement added that Lee, along with other senior leaders, was pardoned to allow him to “lead the country’s continued engine of growth through active investment in technology and job creation.”
A total of 1,693 people are on the pardon list ahead of the annual Liberation Day anniversary on Monday, including prisoners with terminal illnesses and those nearing the end of their sentences, according to the ministry.
After Lee’s pardon was announced, he issued a statement saying he wanted to contribute to the economy through “continuous investment and job creation for young people.” Pictured: Lee in 2020
This anniversary marks Japan’s surrender in World War II in 1945, liberating Korea from decades of colonial rule, and is usually celebrated each year with the pardoning of hundreds of prisoners.
After Lee’s pardon was announced, he issued a statement saying he wanted to contribute to the economy through “continuous investment and job creation for young people.”
The 54-year-old was jailed for crimes related to a massive corruption scandal that ousted former President Park Geun-hye.
He is the latest in a long history of South Korean tycoons charged with bribery, embezzlement, tax evasion or other offences.
However, many of those convicted were cut or suspended, including the late Samsung chairman Lee Kun-hee, who was convicted twice.
The tycoons often received presidential pardons in recognition of their “contribution to the national economy.”
The 54-year-old, pictured in 2021, had been jailed on offenses related to a massive corruption scandal that ousted former President Park Geun-hye
South Korean President Yoon Suk-yeol said today the pardons were aimed at improving the lot of “ordinary people who have been affected by the ongoing Covid-19 pandemic”.
Analysts disagree with the president’s view, with many, including Vladimir Tikhonov, a professor of Korean studies at the University of Oslo, saying the pardons simply make big businessmen feel like they’re not “constrained by any legal norms.”
Former Conservative President Lee Myung-bak, who is currently serving a sentence on corruption charges, was expected to benefit from the pardons.
But he was not included on the list as Attorney General Han said that this time all politicians were excluded because the economy was the “most pressing and important” issue.
Local reports have suggested that pardoning Lee Myung-bak would have been too risky for President Yoon, who is already struggling with record-low approval ratings.
Local reports have speculated that pardoning Lee Myung-bak would have been too risky for President Yoon, who is already struggling with record-low approval ratings.
Lee Jae-yong has yet to face a separate trial on allegations of accounting fraud related to a 2015 merger between two Samsung companies.
Lee Jae-yong, pictured, is yet to face a separate trial on allegations of accounting fraud related to a 2015 merger between two Samsung companies
It comes after he was excused from a hearing in May in that trial to house US President Joe Biden, who began a tour of South Korea with a visit to Samsung’s chip factory with President Yoon.
Lee’s pardon comes after Samsung, the world’s largest smartphone maker with sales about a fifth of South Korea’s gross domestic product, unveiled a 450 trillion won ($346 billion) investment plan over the next five years.
The blueprint aims to make Samsung a leader in sectors ranging from semiconductors to biological products and create 80,000 new jobs.
Lee’s imprisonment wasn’t a hindrance to the company’s performance — it announced a more than 70 percent increase in second-quarter profit last July, with a coronavirus-driven shift to remote work boosting demand for devices using its memory chips used.
Lee’s imprisonment wasn’t a hindrance to the company’s performance — it announced a more than 70 percent increase in second-quarter profit last July, with a coronavirus-driven shift to remote work boosting demand for devices using its memory chips used. Pictured: Lee
The Samsung Group is the largest of the family-run empires known as Chaebol, which dominate business in South Korea.
Mr Tikhonov said: “Samsung worked perfectly without any apologies.
“The pardon weakens the rule of law, which may be more detrimental than beneficial.”
However, a poll conducted by four polling groups last month found that 77 percent of respondents supported Lee being pardoned, despite earlier protests.
Seoul-based political commentator Eom Kyeong-young said, “[This support]seems to be due to the current economic situation, but people also seem to have partly thought that Lee was in a position where he couldn’t shake off the pressure could from the former administration.
“While business groups, including the Korea Chamber of Commerce & Industry and the Korea Enterprises Federation, welcomed Lee’s pardon, civil rights groups criticized Yoon’s businessmen’s pardon.”
Meanwhile, the People’s Solidarity for Participatory Democracy said in a statement, “The Yoon Suk-yeol government … ultimately aspires to only one country only for the rich.”