By Andrew Salmon
Ho hum. Another corporate royal has been convicted of multiple crimes. Last week, a court found Samsung prince Lee Jae-yong guilty of bribery, embezzlement, hiding assets overseas and perjury. So, he did the crime(s). Will he do the time?
Don't bet on it. Again and again, breathless media have described judicial proceedings against Korean corporate criminals as "landmarks," assuming that ― at long last ― the country has "lost patience" with endless chaebol malfeasances, and is finally "getting tough" with its hitherto bulletproof tycoons. But again and again, the big bosses escape justice ― either through light sentences, suspended sentences, overturned sentences or presidential pardons.
One of the most ludicrous ― even comedic ― sentences in judicial history was handed down to Hanwha Chairman Kim Seung-youn in 2007. After marshalling his bodyguards and reinforcing them with gangsters, Kim led this mob in the kidnap and torture of several bar staff who had turfed his son out of a nightspot. While Kim's hired muscle was jailed, Kim, who orchestrated the thuggery, got 200 hours community service.
In what looks like a chip off the old block, two of Kim's sons have subsequently been involved in violent affrays: One went on a rampage in a luxury hotel bar, another resisted arrest and smashed up a police car. I never read of either facing justice.
In 2012, Kim senior went down for four years for embezzlement. After turning up for his appeal trial on a stretcher ― a step up from the "wheel-chairman" theatrics previous chaebol heads indulged in to gain judges' sympathy ― Kim spent some months in hospital before his sentence was overturned. Since being freed, he has appeared to be in rude good health.
Defrauding your company and being in pokey is no reason to remain out of the managerial loop. In 2003, SK Chairman Chey Tae-won was found guilty of accounting fraud and insider trading and jailed. He was behind bars again in 2013 for misappropriating funds. In his second term ― he served half the four-years ― he reportedly received 1,800 visitors to his cell. After getting out, he resumed group leadership.
And should a superboss actually find himself in durance vile? No problem! Intense behind-the-scenes lobbying will whisk your man out of trouble, courtesy of political power broking.
In 1996, Lee Kun-hee, Jae-yong's father, was convicted of bribery, but was saved the following year with a presidential pardon. As it often does in these cases, history repeated itself. Lee was convicted again in 2008, this time for tax evasion. His three-year sentence was suspended and the following year he received ― can you guess? ― another presidential pardon.
Still, things are a bit different this time. Lee is central to the case against dethroned ex-president Park Geun-hye. Were Lee found innocent of bribery, then one of the two key pillars of the case that led to her impeachment would dissolve.
Moreover, the most common grounds for letting a chaebol royal escape justice ― "Justice is important, but the economy is more important" ― holds little water in Lee's case. Samsung's stock has risen over 20 percent since he has been in detention, and it posted record profits in the last quarter.
So ― for any appeal court judges who may be reading this ― let me be clear. If you are really concerned about the economy and want Samsung to prosper, the numbers suggest it would be wise to keep Lee as far away from Samsung as possible.
More critically, it is high time for Korea's quavering judicial authorities to man up. Stop caving before rich, powerful elites! Do your jobs! Place justice to the fore!
Samsung is a critical benchmark. It is Korea's biggest, most powerful brand. Where it leads, others follow. Punishing the prince of this mighty beast presents other chaebol with a powerful precedent "Tread warily. You, too, are accountable."
Yet, on all past experience, I cannot believe Lee will serve out his full term behind bars.
Even if he does, there is no precedent in Korea, Inc, barring him from the managerial suite once he walks free.
Think I am being overly cynical? Okay. Check this space one year hence and see if I am wrong.
Andrew Salmon is a Seoul-based reporter and author. Reach him at andrewcsalmon@yahoo.co.uk.
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Don't bet on it. Again and again, breathless media have described judicial proceedings against Korean corporate criminals as "landmarks," assuming that ― at long last ― the country has "lost patience" with endless chaebol malfeasances, and is finally "getting tough" with its hitherto bulletproof tycoons. But again and again, the big bosses escape justice ― either through light sentences, suspended sentences, overturned sentences or presidential pardons.
One of the most ludicrous ― even comedic ― sentences in judicial history was handed down to Hanwha Chairman Kim Seung-youn in 2007. After marshalling his bodyguards and reinforcing them with gangsters, Kim led this mob in the kidnap and torture of several bar staff who had turfed his son out of a nightspot. While Kim's hired muscle was jailed, Kim, who orchestrated the thuggery, got 200 hours community service.
In what looks like a chip off the old block, two of Kim's sons have subsequently been involved in violent affrays: One went on a rampage in a luxury hotel bar, another resisted arrest and smashed up a police car. I never read of either facing justice.
In 2012, Kim senior went down for four years for embezzlement. After turning up for his appeal trial on a stretcher ― a step up from the "wheel-chairman" theatrics previous chaebol heads indulged in to gain judges' sympathy ― Kim spent some months in hospital before his sentence was overturned. Since being freed, he has appeared to be in rude good health.
Defrauding your company and being in pokey is no reason to remain out of the managerial loop. In 2003, SK Chairman Chey Tae-won was found guilty of accounting fraud and insider trading and jailed. He was behind bars again in 2013 for misappropriating funds. In his second term ― he served half the four-years ― he reportedly received 1,800 visitors to his cell. After getting out, he resumed group leadership.
And should a superboss actually find himself in durance vile? No problem! Intense behind-the-scenes lobbying will whisk your man out of trouble, courtesy of political power broking.
In 1996, Lee Kun-hee, Jae-yong's father, was convicted of bribery, but was saved the following year with a presidential pardon. As it often does in these cases, history repeated itself. Lee was convicted again in 2008, this time for tax evasion. His three-year sentence was suspended and the following year he received ― can you guess? ― another presidential pardon.
Still, things are a bit different this time. Lee is central to the case against dethroned ex-president Park Geun-hye. Were Lee found innocent of bribery, then one of the two key pillars of the case that led to her impeachment would dissolve.
Moreover, the most common grounds for letting a chaebol royal escape justice ― "Justice is important, but the economy is more important" ― holds little water in Lee's case. Samsung's stock has risen over 20 percent since he has been in detention, and it posted record profits in the last quarter.
So ― for any appeal court judges who may be reading this ― let me be clear. If you are really concerned about the economy and want Samsung to prosper, the numbers suggest it would be wise to keep Lee as far away from Samsung as possible.
More critically, it is high time for Korea's quavering judicial authorities to man up. Stop caving before rich, powerful elites! Do your jobs! Place justice to the fore!
Samsung is a critical benchmark. It is Korea's biggest, most powerful brand. Where it leads, others follow. Punishing the prince of this mighty beast presents other chaebol with a powerful precedent "Tread warily. You, too, are accountable."
Yet, on all past experience, I cannot believe Lee will serve out his full term behind bars.
Even if he does, there is no precedent in Korea, Inc, barring him from the managerial suite once he walks free.
Think I am being overly cynical? Okay. Check this space one year hence and see if I am wrong.
Andrew Salmon is a Seoul-based reporter and author. Reach him at andrewcsalmon@yahoo.co.uk.
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