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| Samsung Electronics Vice Chairman Lee Jae-yong checks the company's home appliances at its home appliance division in Suwon, Gyeonggi Province, June 23. Korea Times file |
By Kim Hyun-bin, Kim Yoo-chul
After an independent review of the ongoing prosecution investigation into Samsung Electronics Vice President Lee Jae-yong, a panel of experts concluded Friday that the de facto head of the Samsung Group should not be indicted.
"The members of the panel decided that prosecutors should stop their investigation of Lee and halt attempts to indict him. This recommendation was delivered to the top prosecutors' office," the Supreme Prosecutors' Office announced.
The recommendation is a clear win for Samsung as the recommendation allows its lawyers to challenge any justification for the investigation to continue. The probe had zeroed in on alleged malfeasance by Lee and group executives in a controversial 2015 merger of two affiliates that would have cemented the transfer of control of Samsung to Lee from his father Lee Kun-hee, who has been incapacitated for three years following a heart attack.
Although the panel recommended that Lee not be indicted, the prosecution doesn't necessarily have to accept this conclusion. However, previous recommendations in eight cases have been respected by prosecutors, raising expectations that this latest decision will have an impact on the ongoing investigation.
Samsung's legal counsel said; "We respect the panel's decision as it will help Samsung and Samsung Electronics Vice Chairman Lee Jae-yong focus on business activities to overcome the current challenges."
The panel's review, held behind closed doors, began at around 10:00 a.m. and ended at 07:40 p.m. Analysts had earlier predicted that the process would be over by around 6:00 p.m.
Samsung's Lee Jae-yong didn't attend the meeting.
The 15-member committee was comprised of outside experts including lawyers, professors and representatives of civic groups. They listened to respective arguments from Samsung and the prosecution through presentations, and then questioned both sides before retiring for a vote.
"During the presentations, prosecutors argued that they should continue their investigation into Lee, saying there was sufficient evidence to indict him. Samsung's lawyers presented a 50-page positioning statement refuting this.
According to a source familiar with the proceedings "the vote on the recommendation wasn't unanimous, but there was a majority decision."
Civic groups have been calling for the prosecution to continue its investigation of Lee who has allegedly been involved in bribery and malfeasance. Unsurprisingly, the business sector worries that such an investigation will hurt Samsung and if Lee is indicted it will be a "devastating blow" to the country.
After President Moon Jae-in visited Samsung factories for a second time ― a rare move for a sitting president ― the conglomerate announced a massive investment in electric vehicle batteries and logic chips, industries identified by Cheong Wa Dae as new growth engines.
Also, since Japan implemented export restrictions on certain products needed by Samsung, the firm has supported local component companies developing core materials crucial to industries here. South Korean companies still rely upon Japan in sourcing some core materials.
In line with President Moon's fight against COVID-19, Samsung has teamed up with local partners to supply masks and has provided its hospitals to treat those who tested positive for the contagious disease.
Lee apologized for his alleged wrongdoings in the past and promised to the public not to hand down control of Samsung to his children in an unprecedented nationally televised news briefing.
Industry officials said while there are lots of outstanding issues that Samsung needs to address, prosecutors need to consider its role in various matters affecting the country.
"Whether you like Samsung or not, now is the time for the country to team up with conglomerates to address pending issues," an official said.
In accordance with President Moon's efforts to tackle COVID-19 and highlight South Korea's role in handling the virus, Samsung Biologics, a core part of Lee's succession plan, is partnering with top pharmaceutical companies to mass produce "potential drugs."
The prosecution believes that the controversial merger in question ― between Cheil Industries and Samsung C&T ― was designed purely to help Lee get greater control of the entire conglomerate. Lee has spent a year in prison and was released two years ago after the Supreme Court suspended his sentence.
