Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
After release, Samsung chief asked to play role as 'special vaccine envoy'
Samsung chief Lee Jae-yong speaks with reporters after being released from prison at the Seoul Detention Center, Aug. 13. Yonhap
By Baek Byung-yeul
By Baek Byung-yeul
Following Samsung chief Lee Jae-yong being released from prison Aug. 13, attention is being paid as to whether the leader of the country's largest conglomerate will play a role as a “special vaccine envoy” to help deal with a supply shortage here.
President Moon Jae-in said the justice ministry authorizing the parole was “a choice for the national interest,” which could be interpreted as him expecting the Samsung chief to play a role in facilitating the supply of COVID-19 vaccines.
Early this year, the government signed a contract with Moderna for 40 million doses of its COVID-19 vaccine, but the U.S. biotech firm halved its planned shipment for this month, citing production problems, causing a major disruption in the government's vaccination schedule.
In response, the health ministry immediately protested the delay in the vaccine shipment and sent a delegation led by Second Vice Health Minister Kang Do-tae to Moderna's headquarters in the U.S to demand their contract be adhered to.
“Moderna expressed regret over the problem in the vaccine supply. We will discuss ways to ensure a stable supply in the future,” the second vice minister told reporters at Incheon International Airport, Aug. 13, before leaving for the U.S.
The delegation returned home Sunday and the health ministry said it will issue a press release on Aug. 17.
The government and politicians at the country's ruling Democratic Party of Korea (DPK) have pinned their hopes on Lee playing a “substantial role” as Samsung Group's drug-manufacturing arm Samsung Biologics signed a deal with Moderna in May to manufacture its COVID-19 vaccine. Behind the hope is the expectation President Moon will give a “special pardon” to Lee in the near future.
Samsung Biologics will begin manufacturing Moderna's mRNA technology-based COVID-19 vaccine at its Songdo plant, west of Seoul, starting from the end of August.
“What the government is expecting from the Samsung chief is to get some of the Moderna vaccine manufactured by Samsung Biologics distributed in Korea. Given Samsung's partnership with Moderna, the government thinks Lee can demonstrate his bargaining power in negotiations with Moderna,” a high-ranking government official said Sunday.
“Lee could directly negotiate with Moderna to adjust the amount and timing of the vaccine that Moderna has decided to distribute to Korea,” a senior industry executive said. Among the 40 million doses Moderna scheduled to supply to Korea, the health administration said it has received only 6.1 percent.
As Moderna is moving to raise the unit price of its vaccines supplied to Europe, Samsung's role in price negotiations has become important.