'Samsung Union Busting' Lee Sang-hoon Acquitted in 2nd Trial... "Prosecutors Collected Evidence Illegally" (Comprehensive)

Former Samsung Electronics Board Chairman Lee Sang-hoon [Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] Former Samsung Electronics board chairman Lee Sang-hoon, who was prosecuted for dismantling the Samsung Electronics Service labor union, was acquitted in the appellate court.

The Criminal Division 3 of the Seoul High Court (Presiding Judge Bae Jun-hyun) on the 10th overturned the original sentence of 1 year and 6 months imprisonment against former chairman Lee, who was charged with violating the Labor Union and Labor Relations Adjustment Act, and acquitted him. Samsung Electronics Vice President Kang Kyung-hoon and former Samsung Electronics Service Executive Director Choi Pyeong-seok were sentenced to 1 year and 4 months and 1 year imprisonment respectively, both reduced by 2 months from the original sentence. Lee was charged with orchestrating the so-called 'Greenification' strategy led by the Samsung Group Future Strategy Office’s HR support team in 2013 to disrupt the establishment of the Samsung Electronics Service labor union, organizing a comprehensive control room to carry out oppressive acts such as wage cuts, discriminatory treatment, and targeted audits.

The court ruled that, unlike the original trial, the search and seizure in this case were illegal and thus the evidence could not be admitted, leading to Lee’s acquittal. Earlier, in February 2018, during the investigation of former President Lee Myung-bak’s bribery charges, external hard drives hidden in the underground parking lot of Samsung Electronics’ Suwon headquarters were discovered. The hard drives contained documents indicating that the Samsung Group had systematically orchestrated efforts to dismantle subsidiary labor unions. The court found the evidence collection process to be unlawful.

The court advised Lee, "Although you are acquitted, keep in mind that this does not mean you were not involved or complicit." It added, "While the records could have led to the same conclusion as the original trial, we had to assume the illegally obtained evidence did not exist and reach a conclusion based only on the remaining evidence," and "We gave considerable thought to whether this was an accurate and rational judgment."

Kang Kyung-hoon, Vice President of Samsung Electronics [Image source=Yonhap News]

The court upheld the guilty verdicts for the 25 individuals who were convicted in the original trial alongside Lee. It maintained the original court’s judgment that the anti-union strategy created by the Future Strategy Office to enforce a 'non-union management policy' was executed in a conspiracy chain from Samsung Electronics to Samsung Electronics Service and then to partner companies, recognizing most of the charges as guilty. The court pointed out, "The Future Strategy Office formulated labor-management strategies and disseminated them to affiliates, which created scenario-based responses for each situation," and "The defendants committed extensive unfair labor practices, disregarding the constitutional rights of freedom of association and collective bargaining, causing significant mental distress to workers."

While the structure of the charges recognized in the first trial was maintained, some defendants, including Vice President Kang and former Executive Director Choi, received reduced sentences. Samsung Lions CEO Won Ki-chan was sentenced to 1 year and 6 months imprisonment with 2 years probation, Samsung C&T CEO Jeong Geum-yong received 1 year imprisonment with 2 years probation, and Samsung Electronics Vice President Park Yong-gi was sentenced to 10 months imprisonment with 2 years probation, with slight reductions in sentence or probation periods. Additionally, among the two corporations prosecuted under the corporate liability rule, Samsung Electronics Service was fined 50 million won, while Samsung Electronics was acquitted as in the first trial.