Legal teams announced for Samsung inheritance case

[한겨레] Upcoming court battle getting set to take shape as high-powered lawyers are called in

By Kim Jin-chul, staff writer

Last Friday afternoon, Samsung Electronics chairman Lee Kun-hee, 70, arrived at Gimpo Airport in Seoul. He was returning to Korea after nine days from a "convalescence trip to Hawaii," in accordance with Samsung's statement that he would not be gone for more than 10 days.

On his recent trip, Lee is known to have visited his eldest sister Lee In-hee, 84, an adviser to Hansol Group, who reportedly passed the cold winter in a condo in Ohau, Hawaii. This lends weight to the notion that his trip was related to the inheritance lawsuit filed by Lee's elder brother Lee Maeng-hee, 79, former Cheil Fertilizer chairman and eldest son of Samsung founder and former chairman Lee Kun-hee; and elder sister Lee Sook-hee, wife of Our Home chairman Koo Cha-hak. Lee In-hee has taken Lee Kun-hee's side in the legal battle.

Of greater interest is whether Lee will meet with his youngest sibling, Shinsegae Group chairwoman Lee Myung-hee. Lee Myung-hee has been in Los Angeles since leaving Korea in December 2011. Considered to wield the decisive vote in the legal battle, she has yet to state her position.

Around the time Lee was stepping off his private jet, Samsung Group issued a press release with details of the legal team it had appointed. When asked if the appointment was related to the Hawaii meeting, Kim Soon-taek, head of Samsung's Strategic Planning Office, said he did not know. Previously, many had been of the opinion that Lee's direct action, including the Hawaii trip, was a sign that the lawsuit would be quickly settled through an out-of-court agreement. In other words, it was considered likely that Lee would resolve the matter amicably by meeting directly with his siblings. The public revelation of the selection of Lee's legal time at the same time of his return to Korea, however, signals that a legal battle is beginning in earnest.

Earlier, Lee Maeng-hee's side stepped up its offensive. Last Thursday, law firm Hwawoo, which is representing the former Jaeil Fertilizer chairman, applied to a court for materials relating to the 2008 special prosecutors' investigation into a Samsung slush fund for use as evidence. When the trial began, the form only demanded specific details regarding Samsung Life Insurance shares that Lee Kun-hee had possession of. The form also stated that it planned to make additional applications later regarding Samsung Electronics shares taken over personally by Lee Kun-hee and Samsung Life Insurance shares that he had registered in the name of Samsung Everland.

"This application for evidence is being made in order to expand the scope of the claims we are making," explained one Hwawoo official. The sum at stake in the trial has now increased from 700-800 billion won (about US$623 million to about US$712 million) to 2.3-2.4 trillion. Samsung Group officials previously said that the possibility that Lee Sook-hee would embark on additional trials and claims that Lee Maeng-hee would broaden the scope of his lawsuit were no more than assumptions. These two "assumptions," have now been actualized.

Lee Kun-hee's legal team consists of six lawyers: Kang Yong-hyeon and Kwon Soon-ik of Bae, Kim & Lee; Yun Jae-yun and Oh Jong-han of Shin & Kim; and Hong Yong-ho Yu Seon-yeong of The One. "We chose [them] after considering their areas of expertise and working capabilities, irrespective of firm," explained one Samsung Group official.

With the exception of Kang Yong-hyeon, an expert in civil suits, Yun Jae-yun and Yu Seon-yeong are considered experts in lawsuits between businesses, while Oh Jong-han and Hong Yong-ho are regarded as experts in corporate mergers and acquisitions. "It seems Samsung understands this trial to be one about corporate governance, rather than simply inheritance," was the interpretation offered by one lawyer. The outcome of the trial could affect the Samsung Group's governance structure.

Some think Lee Kun-hee's legal team is inexperienced compared to Lee Maeng-hee's team. Hwawoo has deployed 14 lawyers, including legal giants and former judges Lee Ju-hung, Lim Seung-soon and Kim Dae-hwi. Regarding this, one official from a top conglomerate commented that it should not be overlooked that the Samsung Group itself employed several hundred legal professionals. In other words, it is possible that the Samsung Group's own lawyers, who make up the strongest legal team of any Korean company, may play a role in the battle. Lee Kun-hee's legal team is known to have been recommended by Kim Sang-gyun, a former judge who now heads a legal business team at Samsung. The fact that this trial involves Lee Kun-hee in a personal capacity means that open participation by Samsung's in-house lawyers could lead to controversy over malpractice.

Please direct questions or comments to [englishhani@hani.co.kr]

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