The Samsung scion was pardoned in an attempt to address the South Korean economic crisis.
On Friday, South Korea's President Yoon Suk-yeol granted a pardon for Samsung Electronics Vice Chairman Jay Y. Lee in a bid to alleviate a "national economic crisis." South Korea's Justice Ministry announced the official pardon of the business leader, who is now out on parole after serving 18 months in jail for bribery he had committed while working as the leader of Samsung.
During a briefing, Justice Minister Han Dong Hoon explained an "urgent [need] to overcome the national economic crisis," which resulted in a careful selection process involving economic leaders who will be tasked to lead the "ational growth engine through active technology investment and job creation," CNBC reported.
Lee welcomed the South Korean president's decision and promised to work hard for the struggling national economy. The pardon will grant the Samsung scion increased freedom in carrying out business activities and could make way for bigger investments from Samsung, analysts believe.
South Korean President Yoon Suk-yeol Pardons Another Business Mogul
Lee isn't the only business leader pardoned by South Korea's President Yoon also granted the same to Lotte Group chairman Shin Dong-bin, who was sentenced to two and a half years in prison over bribery charges. In a statement, Lotte Group expressed gratitude to the South Korean government and to Chairman Shin Dong-bin and pledged to "contribute to overcoming the complex global crisis," Reuters reported.
South Korea, whose economy relies on tech and exports, is now grappling with increased inflation rates, weakening demand, and decreased spending. Lee's pardon and reinstatement may lead the way for him to make decisions on major M&A projects and investments, ones that experts believe only he could make.
Now that Lee is pardoned, his employment restriction has been lifted, meaning he can now pursue investments on behalf of Samsung, which experts believe can help propel the economy forward. But Lee hasn't been shying away from the limelight after his 18-month stint in jail.
Lee has in fact appeared in May with President Yoon and US President Joe Biden during the leaders' visit to Samsung's Pyeongtaek chip production facilities. Lee also traveled to Europe in June to meet ASML Holding NV CEO Peter Wennink to discuss the adoption of key high-end chip equipment.
Samsung Leader Still Comes with Legal Risks
While Lee is now able to freely participate in management of Samsung, he still poses a legal risk to the company as he is currently facing charges of fraud and stock manipulation. If convicted, the Samsung leader will again face another jail term. One benefit of the presidential pardon, however, is that it gives him a bit of flexibility to tackle larger management issues for now, Lee Kyungmook of Seoul National University's Graduate School of Business explained.
Earlier this year, Samsung executives hinted at potential acquisitions, which would be the first since it purchased audio electronics maker Harman for $8 billion back in 2017. Samsung Electronics shares had been up 1% compared to the benchmark KOSPI of 0.1%.
