By Kim Tae-gyu
Analysts expressed concerns about the adverse impact the possible arrest of Samsung Electronics Vice Chairman Lee Jae-yong would have on business sentiment and the overall economy.
The Seoul Central District Court will review today the special prosecution team's request to allow it to detain Lee on charges of offering bribes to Choi Soon-sil, the central figure in the scandal involving President Park Geun-hye.
"As head of the country's top business group, Lee should convene Samsung strategy conferences and meet incoming U.S. President Donald Trump to boost the moribund economy instead of spending time in jail," said Yoo Jang-hee who chaired the Presidential Commission on Shared Growth for Large and Small Companies in the early 2010s.
"If Lee is imprisoned, the world will see him as a criminal. Who would want to do business with a criminal? The court is required to consider various economic conditions in its determination."
Yoo, also a renowned economist, added that without Lee, Samsung would be facing tremendous trouble in making significant decisions such as mergers. Lee is the grandson of the late Samsung founder Lee Byung-chul and son of bed-ridden Chairman Lee Kun-hee.
Prof. Yun Chang-hyun at the University of Seoul concurred.
"Now, the whole country is focused on the Choi scandal. But we should also think about what will happen when the current anger regarding it dies down later," Yun said.
"We will probably talk about the economy. Then, why we are trying to put the leader of our top conglomerate behind bars, not making him work for Korea Inc? For me, it does not make sense and most economists would agree with me."
He also noted that the court should not issue the detention warrant because of the low possibility of Lee fleeing or destroying evidence.
"This is neither about slush funds nor accounting fraud. I think that legitimate corporate funds were given at the forceful request of the powerful head of state and her aides," he said.
"I don't understand why the prosecutors are attempting to apprehend the head of the group. Justice sounds good but I am not sure if what the prosecution is doing is really just."
Vice Chairman Lee is suspected of being involved in Samsung's undue financial support to Park's shadowy friend Choi Soon-sil in return for the state fund's backing of a merger between two Samsung units, which some say helped pave the way for the group's father-to-son power transfer.
Samsung contributed more than 20 billion won to two cultural foundations of which establishment and operation is believed to be masterminded by the jailed Choi who also unlawfully interfered in other state affairs.
However, Samsung and Vice Chairman Lee counter that they were forced to cough up the amount without expecting any special favors in return.
Another professor at a Seoul-based university said that the special prosecutors would have to arrest and indict so many executives if they take issue with the donations.
"More than 50 Korean companies, mostly conglomerates, contributed funds to the two foundations in question. If the independent counsel tries to arrest Lee, it would also have to do the same for leaders of all other corporations," said the professor who asked not to be named.
"I don't know why prosecutors try to take away the all-important control tower from the foremost business group at a time when Vice Chairman Lee's father is also not available."
Chairman Lee Kun-hee has been hospitalized since falling into a coma after a heart attack in May 2014.
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| Employees of Samsung Electronics go to work at the firm's office in southern Seoul, Tuesday. / Yonhap |
The Seoul Central District Court will review today the special prosecution team's request to allow it to detain Lee on charges of offering bribes to Choi Soon-sil, the central figure in the scandal involving President Park Geun-hye.
"As head of the country's top business group, Lee should convene Samsung strategy conferences and meet incoming U.S. President Donald Trump to boost the moribund economy instead of spending time in jail," said Yoo Jang-hee who chaired the Presidential Commission on Shared Growth for Large and Small Companies in the early 2010s.
"If Lee is imprisoned, the world will see him as a criminal. Who would want to do business with a criminal? The court is required to consider various economic conditions in its determination."
Yoo, also a renowned economist, added that without Lee, Samsung would be facing tremendous trouble in making significant decisions such as mergers. Lee is the grandson of the late Samsung founder Lee Byung-chul and son of bed-ridden Chairman Lee Kun-hee.
Prof. Yun Chang-hyun at the University of Seoul concurred.
"Now, the whole country is focused on the Choi scandal. But we should also think about what will happen when the current anger regarding it dies down later," Yun said.
"We will probably talk about the economy. Then, why we are trying to put the leader of our top conglomerate behind bars, not making him work for Korea Inc? For me, it does not make sense and most economists would agree with me."
He also noted that the court should not issue the detention warrant because of the low possibility of Lee fleeing or destroying evidence.
"This is neither about slush funds nor accounting fraud. I think that legitimate corporate funds were given at the forceful request of the powerful head of state and her aides," he said.
"I don't understand why the prosecutors are attempting to apprehend the head of the group. Justice sounds good but I am not sure if what the prosecution is doing is really just."
Vice Chairman Lee is suspected of being involved in Samsung's undue financial support to Park's shadowy friend Choi Soon-sil in return for the state fund's backing of a merger between two Samsung units, which some say helped pave the way for the group's father-to-son power transfer.
Samsung contributed more than 20 billion won to two cultural foundations of which establishment and operation is believed to be masterminded by the jailed Choi who also unlawfully interfered in other state affairs.
However, Samsung and Vice Chairman Lee counter that they were forced to cough up the amount without expecting any special favors in return.
Another professor at a Seoul-based university said that the special prosecutors would have to arrest and indict so many executives if they take issue with the donations.
"More than 50 Korean companies, mostly conglomerates, contributed funds to the two foundations in question. If the independent counsel tries to arrest Lee, it would also have to do the same for leaders of all other corporations," said the professor who asked not to be named.
"I don't know why prosecutors try to take away the all-important control tower from the foremost business group at a time when Vice Chairman Lee's father is also not available."
Chairman Lee Kun-hee has been hospitalized since falling into a coma after a heart attack in May 2014.
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