Samsung Group Update

The billionaire head of Samsung’s technology empire, Lee Jae-yong, will be released on Friday, a decision that will renew concerns about the uneasy relationship between South Korea’s largest company and the government.

Lee was released on parole on Monday after he was sent back to prison eight months after bribing former President Park Geun-hye to help control Samsung Electronics, the crown jewel of the group.

After officials stated that he was eligible for parole after completing 60% of his sentence, Samsung’s CEO’s two and a half years’ sentence was shortened.Li had spent a year in prison before he went to prison Released by the Court of Appeal In 2018.

His release is part of South Korea’s tradition of commemorating the end of Japan’s brutal rule and forgiving prisoners. It also marked the probation of the world’s largest manufacturer of smartphones, computer chips and electronic displays.

But this move has once again become the focus of relations between South Korea and South Korea. Chaebol, The company that dominates Asia’s fourth largest economy, and the government of President Moon Jae-in that promised to subdue family-controlled conglomerates.

Park Sang-in, a professor of economics at Seoul National University, said: “As far as chaebol reform is concerned, this is a step backwards and runs counter to the hope that people will no longer provide privileges to tycoons.”

Samsung employees and investors hope that Lee Jayyong will start a series of acquisitions and investments.They may focus on expanding the company’s The dominance of computer chips And improve its 5G business And artificial intelligence technology.

Samsung’s most recent major acquisition was the acquisition of Harman, an American automotive technology group, for USD 8 billion in 2016. Critics say the company has been unable to conduct further transactions because its 53-year-old descendants were distracted by legal issues related to Li Kun’s succession-hey, his late father.

But it is expected that Lee will decide the company’s next U.S. Processor chip factory SK Securities analyst Kim Young-woo said he will be found shortly after his release. He added that the company’s display business may also develop new investment plans.

Lee’s imprisonment caused a high degree of division in South Korea.

Opinion polls show that many South Koreans support his release, and business groups, including American companies, lobbied the president to issue a pardon order on the grounds that imprisoning the country’s most important corporate leaders would harm the economy.

But many people say that Lee’s release destroyed Moon Jae-in’s promise Subdue family-controlled corporate groups and end the tradition of pardons Chaebol leader.

Corporate governance expert and former legislator Cai Yibei criticized the government for granting Lee Kuan Yew “privileges” while evading procedural rules and regulations.

“They seem to think that this decision is politically beneficial to them because public opinion supports his release. But if the rule of law is not respected, there are often exceptions, which will undermine the public trust of state institutions,” Ibey said.

Li also faces more legal challenges.

He is scheduled to appear in Seoul District Court on Thursday to hear a lawsuit related to the allegations. $3.9 billion in accounting fraud In Samsung’s biopharmaceutical department. Prosecutors believe that these moves were carefully planned by the company’s executives to help consolidate Lee’s succession.

Li and the company denied these allegations.

The lawyer defending the company stated that the merger between Samsung C&T and Cheil Industries, which is at the core of the dispute, “follows rules and regulations,” while Samsung Bio’s accounting changes “also comply with international accounting standards and regulations.”

The prospects of the Lee family are further overshadowed $11 billion inheritance tax Must be paid within five years. Analysts expect that Lee Myung-bak and his two sisters will sell shares in non-core Samsung Group companies and raise Samsung Electronics’ dividends to pay bills.

Supplementary report by Kang Buseong in Seoul

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