Shares of Samsung Elec and others down as the group awaits Lee verdict

Shares of Samsung Electronics Co. and other flagships under Korea’s household corporate name have sagged Monday as investors await the final verdict on Samsung Electronics Vice Chairman Jay Y. Lee’s bribery case connected to President Park Geun-hye whose guilty sentence was confirmed by the Supreme Court last week.

On Monday, shares of Samsung Electronics fell 3.41 percent to close at 85,000 won ($76.78). Samsung Life Insurance shares slipped 4.96 percent to 78,500 won.

The Seoul High Court is set to issue a final ruling and sentences around 2:00 p.m. on Monday on Lee who is charged of bribing former President Park Geun-hye and her long-time confidant Choi Soon-sil, both of whom are now behind bars, in return for their backing in solidifying Lee’s grip on the nation’s top conglomerate.

Prosecutors are seeking a nine-year prison sentence against him.

The de facto leader of Samsung Group was jailed in 2017 after receiving a five-year jail term, but released in the following year after an appeals court gave a suspended term of two and a half years.

The Supreme Court, however, overturned the appeals court’s ruling in 2019 and ordered a retrial, saying some charges that the lower court had found not bribes should be considered as such.

Eyes are now on whether the efforts that Samsung has made since to strengthen its law-abiding management would help him avoid a prison term. The group launched an internal legal compliance monitoring committee in February 2020. Lee made a public apology in May, vowing not to pass down management of Samsung to his children. He expressed his deep regret about his alleged wrongdoings and pledged to create a “new Samsung” in his final testimony in December.

Samsung Display Co. became the first Samsung affiliate last Thursday to sign a collective agreement after eight months since Lee declared the conglomerate would end its ‘no labor union’ policy.

Business leaders have petitioned for Lee citing the possible repercussion of the verdict on other companies working in partnership with Samsung affiliates and the country’s overall economy. Park Yong-maan, chairman of the Korea Chamber of Commerce & Industry (KCCI) and Ahn Keon-joon, president of the Korea Venture Business Association, filed a petition for merciful ruling on Lee last Friday.

“We expect leniency from the court to allow Samsung Electronics Vice Chairman Lee to focus on supporting growth of SMEs and contributing future investment and job creation” in Korea, said Kim Gi-moon, chairman of the Korea Federation of SMEs Chairman Kim Ki-moon on Sunday.

[ㄏ Maeil Business Newspaper & mk.co.kr, All rights reserved]