Biz sector welcomes Lee's release
By Kang Seung-woo
The nation’s business organizations welcomed the appeals court’s ruling on awarding a suspended sentence to Samsung Electronics Vice Chairman Lee Jae-yong, Monday, with hopes his release will translate into improving the national economy.
The Seoul High Court sentenced the 49-year-old to two and a half years in prison with a suspended sentence of four years.
He was sentenced to five years in prison last August for bribing then-President Park Geun-hye and her close confidant Choi Soon-sil for help in strengthening his grip on Korea’s largest conglomerate. Lee had been under detention since mid-February of last year.
The Federation of Korean Industries (FKI) said it respects the court’s ruling based on objective facts and legal principles.
“The appeals court’s suspended sentence of Lee will not only positively affect Samsung’s credit rating and aggressive management, but contribute to the nation’s whole economy,” said Bae Sang-geun, an executive director of the FKI, formerly the nation’s largest business lobby group.
Samsung was an FKI member, but withdrew due to the lobby group’s involvement in the political scandal that removed Park from office.
“Without taking the trial process lightly, Samsung needs to play a bigger role as a socially responsible corporation such as expanding investment and creating more jobs,” Bae added.
The Korea Employers Federation (KEF) also said this ruling has cleared allegations and misunderstandings surrounding Samsung, the world’s fourth-biggest company in terms of brand value according to British corporate valuation and strategy consultancy Brand Finance, last week.
“We hope Samsung Group will make efforts to fill the leadership vacuum as soon as possible and strive to help improve the nation’s economy through increased investment and job creation,” it said.
Such reactions are a reversal to the ruling from the first trial as they remained mum about his sentence.
The Korea Federation of SMEs also said the long-term detention and investigation of a business leader amid a fiercer environment for global management can do massive harm to the nation as well as the company.
“Samsung is urged to take a lesson from the case and focus on transparent management to regain public trust,” it said.
Despite the welcoming notes from the business community, Samsung remained cautious about the higher court ruling without issuing any statements.
“Samsung has yet to decide how to make an official statement on the ruling,” a Samsung official said.
According to the official, the business group is set to monitor how the situation develops and deliver its message through either Lee himself or his legal team.