Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS) and a former prosecutor, bowed his head and said he "respects the judiciary's ruling" after Samsung Electronics Chairman Lee Jae-yong, who is accused of involvement in the unfair merger of Samsung C&T and Cheil Industries, was acquitted in both the first and second trials.
Lee Bok-hyun, Governor of the Financial Supervisory Service (right), and Seo Yoo-seok, Chairman of the Korea Financial Investment Association, are attending the "Open Discussion for Revitalizing the Korean Stock Market" held at the Korea Exchange in Yeouido, Seoul on the 6th. 2025.02.06 Photo by Yoon Dong-joo
Governor Lee said on the morning of the 6th, after the "Open Discussion for Revitalizing the Korean Stock Market" held at the Korea Exchange in Yeouido, "As a member of the public, I hope Samsung can secure new competitiveness, serve as a stepping stone for a new leap forward, and contribute to the national economy."
Earlier, the Seoul High Court Criminal Division 13 acquitted Chairman Lee of all 19 charges in the appeal trial for violations of the Capital Markets Act, as in the first trial, leading to criticism that the prosecution's investigation and indictment were excessive. Governor Lee previously led the related prosecution investigation as the head prosecutor of the Economic Crime Division at the Seoul Central District Prosecutors' Office.
Governor Lee said, "As the person responsible for filing the indictment, who made the prosecution decision, constructed the logic, and prepared the grounds, I apologize to the public for not being sufficiently prepared to persuade the court." He also mentioned that he could not continue in the position as he moved to the FSS governor role and apologized to his juniors.
However, he stated, "From the Everland convertible bonds to the merger of Samsung C&T and Cheil Industries, the judiciary has taken the position that it is difficult to recognize shareholder protection value solely based on the interpretation of legal texts," adding, "In that sense, rather than relying only on legal interpretation, amendments including the Capital Markets Act are inevitable to prevent cases of spin-offs, mergers, and failures to protect shareholder value." He also added that the government is submitting various bills to protect shareholder value.
Regarding the management dispute at Korea Zinc, Governor Lee reiterated a fundamental stance, saying, "As I have said several times, it is a competition and conflict among those with expertise and capital," and "It is not appropriate to intervene unless there is market disruption or illegality." He added, "In past hostile mergers and acquisitions (M&A) cases, I have seen examples where competition overheated and crossed gray areas, leading to market disruption," and "I am still observing such aspects."
On the competition among asset management companies, including Mirae Asset Global Investments, to lower fees for exchange-traded funds (ETFs), he evaluated, "It is desirable that consumer burden costs decrease through a natural competitive process." However, he expressed concerns, saying, "There are worries about giving consumers a wrong perception through excessive methods, overlooking qualitative services, and excessive competition," and added, "Although direct intervention is difficult, we will convey these concerns and ensure that the market does not become chaotic due to a lack of quality products and qualitative growth."
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