Samsung chief set to apologize over wrongdoings
Samsung Vice Chairman Lee Jae-yong checks out display panels supporting QD-OLED viewing technology during his recent visit to Samsung Display's plant in Asan, South Chungcheong Province, in this file photo. Korea Times file
By Kim Yoo-chul
Samsung Electronics Vice Chairman Lee Jae-yong, the de facto head of the Samsung group, is set to issue a public apology for previous misdeeds by the conglomerate in helping him “inherit” the top job there from his father Chairman Lee Kun-hee.
On Monday, senior Samsung sources contacted by The Korea Times said they expect the vice chairman to make a public apology before a May 11 deadline set by the group's external compliance monitoring committee.
“Honestly, lots of scenarios are under constant review. But one viable option is for the vice chairman to make a public apology by reading a prepared statement. It's all about timing and if the vice chairman makes the deadline, then it will probably have an impact, which I cautiously think would be pretty positive,” one of the sources said requesting anonymity.
Regarding the details of any possible apology, a company spokesman commented, “Like we have said multiple times, Samsung is tackling the issue very prudently and thoroughly. We will make an announcement if we have to.”
Previously an earlier deadline had been set, but Samsung Electronics asked the compliance committee to extend this to May 11 citing the outbreak of the COVID-19 pandemic and the need to review procedural issues. Upon launching the internal committee, Samsung said it would strictly abide by its recommendations to improve group-wide management transparency. The committee asked Lee to apologize for the alleged involvement of group executives in the succession issue and the group's anti-union activities.
Another source very familiar with Samsung issues said Lee won't ask for a further delay. “The reason I think is because the ruling party won a landslide victory in the recent general election. Thanks to its victory, President Moon Jae-in is seeking the help of leaders of large conglomerates to get the fragile economy back on track,” he said.
President Moon shifts toward economy
President Moon and his economic team have been doing quite well in handling “everything relating to COVID-19,” according to a senior source. Based on their confidence following the election win, the government and Cheong Wa Dae will cooperate to improve the local economy by initiating support programs for top conglomerates.
The sources agreed if the vice chairman proffers an apology, then that would be a “good point” to persuade Moon's supporters to accelerate efforts to improve the economy with Samsung playing a “major role.” Moon earlier thanked Samsung for its efforts at a recent ceremony unveiling an $11 billion investment in OLED display technologies.
In addition, Moon and Cheong Wa Dae have stressed Samsung's role in Korea's trade feud with Japan in terms of increasing the localization of materials and parts crucial to the country's manufacturing industry. This came after Tokyo decided to remove Seoul from its list of preferred trading partners.
“While the ruling Democratic Party of Korea promised greater and increased checking of top conglomerates during the election campaign, President Moon and Cheong Wa Dae are battling the country's economic troubles. The backbone of the economy is not in good shape. While liberal activist groups are expected to oppose any suggestion of government support for conglomerates, now is the time to search for clues. Lee's apology could be used for that,” said Philip Jeon, an economics professor at Hanyang University.
Economic indices are flashing warning lights. The number of workers on payrolls dropped by nearly 200,000 in March from a year earlier, the largest decline since May 2009. Exports, which underpin the economy, incurred a 19 percent year-on-year fall in the first 10 days of April.
“The vice chairman is likely to make an apology because he doesn't want to go to prison if he fails to follow the orders of the court,” said Lee Phil-sang, a professor at Seoul National University. “Now it's the vice chairman's decision as to what he should do for Samsung.”
In 2019, the country's Supreme Court overturned an appellate court verdict on Lee and sent it back to the Seoul High Court for a review.