'Union Busting' Lee Sang-hoon Acquitted in 2nd Trial... Metalworkers Union Claims "Samsung's Invincibility Proven" (Comprehensive Report 2)

Court: "Prosecutor's Illegal Collection... Evidence Admissibility Denied"
Original Charges Maintained... Kang Kyunghun and Choi Pyeongseok Sentenced to Prison

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

[Asia Economy Reporter Seongpil Cho] Lee Sang-hoon, former chairman of the Samsung Electronics board of directors, who was prosecuted on charges of dismantling the Samsung Electronics Service labor union, was acquitted in the appellate trial.

The Criminal Division 3 of the Seoul High Court (Presiding Judge Bae Jun-hyun) overturned the original sentence on the 10th, which had sentenced Lee to 1 year and 6 months in prison for violating the Labor Union and Labor Relations Adjustment Act, and acquitted him. Samsung Electronics Vice President Kang Kyung-hoon and Samsung Electronics Service Executive Director Choi Pyeong-seok were sentenced to 1 year and 4 months and 1 year in prison, respectively, with a reduction of 2 months from the original sentence. Lee and others were charged with devising 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 situation 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 the evidence could not be recognized, thus acquitting Lee. Earlier, in February 2018, during the investigation of former President Lee Myung-bak’s bribery charges, hidden external hard disks were discovered in the underground parking lot of Samsung Electronics’ Suwon headquarters. The hard disks secured contained documents indicating that the Samsung Group had systematically orchestrated union-dismantling operations at its subsidiaries. The court found the evidence collection process to be illegal.

The court advised Lee, "Although you are acquitted, keep in mind that this does not mean you were not involved or complicit." It added, "Looking at the records, it was possible to reach the same conclusion as the original trial, but we had to assume the illegally collected evidence did not exist and reach a conclusion based only on the remaining evidence. We gave this considerable thought to determine 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 verdict for the 25 people who were convicted in the original trial along with Lee. It maintained the original judgment that the union-dismantling 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 established labor-management strategies and disseminated them to each affiliate, which created scenario-based responses. The defendants committed extensive unfair labor practices, disregarding the constitutional rights of freedom of association and collective bargaining, causing significant mental distress to the workers."

While the structure of the charges recognized in the first trial was maintained, some, including Vice President Kang and Executive Director Choi, received reduced sentences. Samsung Lions CEO Won Ki-chan was sentenced to 1 year and 6 months in prison with 2 years probation, Samsung C&T CEO Jeong Geum-yong received 1 year in prison with 2 years probation, and Samsung Electronics Vice President Park Yong-gi was sentenced to 10 months in prison 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.

The Korean Metal Workers' Union strongly opposed the verdict, issuing a statement titled "Samsung Bulpa (Illegal Dispatch) Trial Proving Samsung’s Invincibility" after the sentencing. The Metal Workers' Union stated, "The court’s logic that acquittal is justified because the investigation was based on accidentally discovered materials permanently blocks the path to investigate and punish capital’s union-dismantling crimes until an internal whistleblower willing to fight against conglomerates emerges." The union also expressed concern, saying, "We fear this ruling is a preemptive move by the court to create an escape route in the upcoming sentencing of Vice Chairman Lee Jae-yong’s retrial."