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| Samsung Electronics Vice Chairman Lee Jae-yong offers a public apology over alleged bribery and other wrongdoings in a nationally-televised event from the company's headquarters in Seocho, southern Seoul, May 6. Korea Times file |
By Kim Yoo-chul
Following Samsung's de facto head Lee Jae-yong claiming a rather "symbolic victory" late last week after an independent panel of experts decided prosecutors "should not indict" the Samsung Electronics vice chairman, the group is expected to strategize specific ways on how to expand investment both in and outside Korea.
Samsung said it had no official comment on its future business moves following the panel's recommendation, but minutes after the decision, the company's lawyers said in a statement the decision would help Samsung and Lee focus on the best business activities amid the current coronavirus pandemic.
Samsung requested the appointment of the civilian review panel, a system established in 2018 by prosecutors aimed at checking the validity of investigations of suspects for alleged crimes before they issued an indictment.
Because the recommendations were interpreted as representing a public consensus on the ongoing case, the world's top smartphone producer and memory chip maker could announce detailed investment plans in sync with President Moon Jae-in's economic drive and its exploring of new business opportunities, officials and sources contacted by The Korea Times said Sunday.
"The key point, I think, is that Samsung is trying to reduce Vice Chairman Lee's legal jeopardy. That indicates Samsung will formulate a strategy to do more in terms of backing President Moon and Cheong Wa Dae economic team's core economic agenda. Also, Lee will be encouraged to accelerate his efforts to find new growth engines beyond its conventional model," a senior industry executive said.
Park Ju-gun, chief executive at CEOScore.com, which tracks business activities of the top conglomerates here, said because the panel decided Lee should not be indicted, prosecutors will be under huge pressure. While panel recommendations aren't legally binding, the prosecution has accepted them in previous cases.
"Cheong Wa Dae was informed about the recommendation. Samsung could now support the government's drive to nurture new businesses that South Korea can advance into," another industry executive said.
President Moon earlier identified extreme ultra-violet lithography for logic-chip-making, organic light emitting diodes and hydrogen-centric sectors for the country's next growth engines. After Japan delisted Korea from its list of most preferred trading partners, Samsung joined with the government to nurture companies producing core industrial materials crucial to the country's key manufacturing industries. South Korea heavily relied on imports from Japan for these.
Samsung has already spent millions earlier on President Moon's initiative to fight the COVID-19 pandemic, including expanding testing that has been instrumental in lowering the rates of the infectious disease in the country.
Since President Moon took office in 2017, he has focused on reforming the prosecution and conglomerates, aiming to lower the latters' influence on society and politics. Moon also wants to get rid of their long-time controversial ties with the presidential office, and aides working there, in order to get political favors.
Before the opening of the panel review, Samsung's Lee issued a nationally-televised public apology over alleged past wrongdoings, promising not to pass on managerial rights of the conglomerate on to his children.
Lee was previously indicted in early 2017 on charges of bribery and other corrupt activities.
Prosecutors believe Samsung executives' decision to provide horses and money to Choi-Soon-sil a confidante of the impeached and jailed former President Park Geun-hye was intended to win support for a power transition from Samsung Chairman Lee Kun-hee ― who has been unable to manage the country's most-powerful conglomerate since a heart attack years ago ― to his son, the Samsung Electronics vice chairman.
