Business Groups Respond in Succession
Calls for "Discovering Growth Engines and Creating Jobs"
After Lee Jae-yong, Chairman of Samsung Electronics, was acquitted on July 17 of charges related to unfair merger and accounting fraud, the business community welcomed the resolution of Samsung's "judicial risk" and expressed expectations for positive ripple effects on the Korean economy.
Kang Seokgu, Head of the Research Division at the Korea Chamber of Commerce and Industry, stated, "We respect and welcome the Supreme Court's final ruling regarding the merger between Samsung C&T and Cheil Industries," adding, "In a situation where global competition in advanced industries is fierce, we expect this will not only resolve management risks for the company but also have positive ripple effects across the Korean economy."
Lee Sangcheol, Head of Public Relations at the Korea Employers Federation, commented, "With global competition intensifying in advanced technologies such as artificial intelligence (AI) and semiconductors, and with challenges such as U.S.-led tariffs and entrenched low growth, the role of Samsung Electronics as a representative of Korean companies is more important than ever."
He emphasized, "We urge Samsung Electronics, under the strong leadership of Chairman Lee Jae-yong, to do its utmost to secure an advantage in the global market through more active investment and technological innovation, to discover new growth engines, and to create more jobs, thereby laying the foundation for another leap forward for our economy."
Lee Sangho, Head of the Economic and Industrial Division at the Federation of Korean Industries, also welcomed the Supreme Court's acquittal of Lee Jae-yong, Chairman of Samsung Group, stating, "This will serve as an important opportunity for Samsung Group to focus on innovation in advanced technologies and to secure global competitiveness."
The Federation of Korean Industries added, "Amid rising uncertainties such as global trade conflicts and competition for supremacy in advanced industries, strategic investment and development by companies, as well as swift decision-making, will be key stepping stones for overcoming the challenges facing our economy. We also urge the National Assembly and the government to pursue reasonable institutional reforms and bold support measures."
The Supreme Court's third division upheld the lower court's complete acquittal of Chairman Lee, who had been indicted on charges including unfair trading and stock price manipulation under the Capital Markets Act, as well as breach of trust. Lee and others were indicted in September 2020 on charges of involvement in various unfair transactions, stock price manipulation, and accounting fraud orchestrated by Samsung's Future Strategy Office during the 2015 merger between Cheil Industries and Samsung C&T, allegedly to ensure a stable succession of management control at minimal cost and to strengthen his influence.
This ruling has completely resolved the judicial risk that has persisted for a decade since the state affairs scandal. As a result, there are expectations that Chairman Lee will now be able to fully pursue the "New Samsung" vision, including large-scale mergers and acquisitions (M&A) and investments, free from management constraints.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
