Expectations growing for release of jailed tycoons

By Lee Hyo-sik

Chey Jae-won SK Group vice chairman

Expectations are growing over the release of SK Group Vice Chairman Chey Jae-won and other jailed business tycoons, following President Park Geun-hye’s remarks she would grant pardons to mark Liberation Day on Aug. 15.

Chey and many other jailed businessmen have been repeatedly denied parole or special pardons over the past few years due to unfavorable public sentiment toward their release before their jail terms end.

Among the controlling family members of the country’s large business groups, SK Chairman Chey Tae-won was the only one to be pardoned a year ago by the Park administration.

Hanwha Chairman Kim Seung-yeon was given parole in February 2014 because of his deteriorating health. But Kim cannot assume an official role until his parole ends in February 2019.

In a meeting with Cheong Wa Dae secretaries, Monday, Park said she will grant special pardons to selected inmates, the third of its kind since she took office in February 2013.

“To celebrate the 71st Liberation Day and help achieve national unity, the government will grant special pardons,” Park said. “The Korean economy, which has been facing increasing difficulties, needs to find a breakthrough.”

In the past, Park made remarks viewed as largely unfavorable toward the early release of jailed businessmen.

But this time, she did not explicitly exclude business leaders from the list, raising the possibility that tycoons may get out of jail.

“SK Group desperately needs Vice Chairman Chey to return to management as soon as possible,” said an industry official familiar with the matter. “Even though the older Chey has been spearheading the group since he came back a year ago, his younger brother has many roles to play. The vice chairman needs to be in charge of SK’s numerous business projects.”

The younger Chey was sentenced to three-and-a-half years for embezzling and misappropriating 46.5 billion won in company money. He has so far served 39 of 42 months.

Former LIG Nex1 Vice Chairman Koo Bon-sang is another jailed businessman eligible for the special pardon. Koo, who has served most of his term, was put behind bars on fraud charges for deceiving investors into purchasing the group’s fraudulent commercial papers.

In addition, Hanwha Group expects its Chairman Kim to be included in the list so he can take up an official role in managing Korea’s eighth-largest conglomerate.

“We really want Kim to be pardoned so that he can officially assume the chairmanship,” a Hanwha Group official said. “The group needs him to spearhead a range of business projects. Due to his absence, we have had difficulty securing large-scale business projects abroad.”

However, CJ Group Chairman Lee Jay-hyun, Hyosung Group Chairman Cho Suk-rai, former Taekwang Group Chairman Lee Ho-jin and Dongkuk Steel Chairman Chang Se-joo are not eligible for the planned presidential pardon because their legal cases are still pending in court.

CJ Group is reportedly considering giving up on its appeal to the Supreme Court, hoping that Lee would be included among the special pardons. Last November, the CJ chairman was sentenced to a three-and-a-half year prison term by the Seoul High Court on charges of embezzlement, breach of trust and tax evasion.