Overcoming Economic Crisis and Government Support
Lee Jae-yong's Role in Busan Expo Bid
Shin Dong-bin, Park Chan-gu, and Lee Joong-geun Also Considered
[Asia Economy Reporters Sunmi Park and Hyungmin Kim] It is widely known that a large number of businesspeople are likely to be included in the special pardon for Liberation Day on August 15. Positive public opinion has formed, advocating for the pardon of businesspeople to overcome the economic crisis, and the government has also expressed a favorable stance. There are even expectations that the largest number of businesspeople in history could be pardoned.
According to the legal community on the 8th, the Ministry of Justice will hold a pardon review committee meeting on the 9th to select candidates for the August 15 special pardon and reinstatement. The selected candidates will be reported to President Yoon Suk-yeol. The committee consists of nine members: four internal officials from the Ministry of Justice and prosecution, including Minister of Justice Han Dong-hoon and Vice Minister Ino Gong, and five external members. The pardon recipients are expected to be announced around the 12th. Most of the businesspeople nominated for pardon have completed their sentences but still face restrictions on their business activities. If Samsung Electronics Vice Chairman Lee Jae-yong is pardoned and reinstated, the five-year employment restriction imposed under the Act on the Aggravated Punishment of Specific Economic Crimes will be lifted, allowing him to engage in business activities freely.
Earlier, Vice Chairman Lee was sentenced to two years and six months in prison in January last year for the state affairs manipulation case, and including the time he was held at Seoul Detention Center during the early investigation, he completed his sentence by the end of last month. With Samsung Electronics’ growing role in the CHIPS Act alliance proposed by the U.S. to South Korea, Japan, and Taiwan, and the Korean government pouring out support measures to foster semiconductors as a national advanced strategic industry, the need for Vice Chairman Lee’s return to normal business activities has become even more urgent. His role is also growing as a private committee member participating in the bid for the 2030 Busan World Expo. Samsung Electronics’ entire group management is actively supporting the Busan Expo bid, and there is high expectation that Vice Chairman Lee’s powerful global network will greatly contribute to securing the Expo.
Public opinion is also favorable. According to an index released by the polling agency Data & Research, which analyzed big data from online postings over the past three months, 63% of the public supported Vice Chairman Lee’s pardon. In the National Barometer Survey (NBS) conducted by Embrain Public, K-stat Research, Korea Research, and Hankook Research from the 25th to 27th of last month with 1,006 adults nationwide, 77% of respondents supported Lee’s pardon. Other business leaders such as Shin Dong-bin, Chairman of Lotte Group; Park Chan-gu, Chairman of Kumho Petrochemical; Lee Jung-geun, Chairman of Booyoung Group; Lee Ho-jin, former Chairman of Taekwang Group; and Jang Se-ju, Chairman of Dongkuk Steel, are also being considered for pardon. Chairman Shin was sentenced in October 2019 to two years and six months in prison with a four-year probation for state affairs manipulation and breach of duty. Although there was no employment restriction order, his business activities have been hindered due to probation. Chairman Park also has probation, and Chairmen Lee, former Chairman Lee, and Chairman Jang are restricted by employment bans.
Historically, our government has used pardons for businesspeople as a breakthrough during national economic crises. During the Lee Myung-bak administration, the late Lee Kun-hee, Chairman of Samsung Group; Chung Mong-koo, Honorary Chairman of Hyundai Motor Group; and Kim Seung-yeon, Chairman of Hanwha Group were pardoned. The Park Geun-hye administration released SK Group Chairman Chey Tae-won and CJ Group Chairman Lee Jae-hyun. The Moon Jae-in administration maintained a principle of minimizing special pardons for businesspeople but granted Vice Chairman Lee parole on August 15 last year.
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