Business lobby groups call for presidential pardon of Samsung, Lotte chiefs

Jay Y Lee and Shin Dong-bin. [Photo by MK DB]

South Korea’s major business lobby groups on Monday called for a presidential pardon and reinstatement of Samsung Vice Chairman Jay Y Lee and Lotte Group Chairman Shin Dong-bin for the sake of the national economy that is facing unprecedented challenges due to the pandemic, geopolitical uncertainties in Ukraine, and tensions between the United States and China.

The five major lobby groups – the Korea Chamber of Commerce and Industry, the Korea Enterprises Federation, the Korea International Trade Association, the Korea Federation of SMEs, and the Federation of Middle Market Enterprises of Korea – jointly submitted the petition for Lee, Shin and other business leaders to Cheong Wa Dae and the Ministry of Justice, hoping their names to be included in the list of President Moon Jae-in’s last presidential pardons on Buddha’s birthday on May 8, one day before the end of the president’s five-year term.

The lobby groups said their restricted leadership pose a barrier to making responsible decisions, such as major investment and mergers and acquisitions.

Lee, who has been on parole since August 2021, was convicted of bribing impeached former President Park Geun-hye in exchange for favors regarding Lee’s stronger control over Korea’s largest business group Samsung. Lee is not eligible to return to work because he is subject to a five-year ban imposed by the justice ministry. During the parole, Lee must obtain approval from the ministry for his overseas business trip each time. He is not eligible to be named as a registered director or hold an official title to represent Samsung Electronics.

Shin received a suspended sentence on bribery charges to Park, but he cannot avoid legal risk during his probation.

Samsung Electronics has made no M&A since its $8 billion acquisition of connected car technology provider Harman in 2016, and Lee’s absence in the office is a major reason for Samsung’s low profile in major investments, business lobbies said.

“In order for the Korean economy to overcome the current challenges, innovative entrepreneurship is needed. It is not easy to see the innovative, entrepreneurial spirit from Samsung where its key decision maker is bound to legal restrictions,” said Kim Tae-gi, a Dankook University economy professor.

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