20/01/2021 07:54 GMT + 7
Some sources claim that “Crown Prince” Lee Jae-yong can still operate Samsung while in prison, by receiving summary reports, although many industry experts confirm the level of participation from behind bars. there are certainly limitations.
The prison sentence for “heir” Lee Jae-yong is making the entire business management work of Samsung Group in a state of waiting and freezing. According to Samsung, the company’s senior leaders are about to hold an emergency meeting to find ways to deal with the crisis.
“There was a lot of hope within the corporation, that Lee would get a suspended sentence, but the verdict just came out as a shock,” said a leader. Plan B and will hold meetings to discuss related issues “.
|The prison sentence for “heir” Lee Jae-yong is making the entire business management of Samsung fall into a state of waiting and freezing.|
Over the years, Lee Jae-yong has practically run Samsung, as the Vice President and acting Chairman of the Group. Industry insiders believe Lee’s absence will delay or halt important business decisions, such as a merger or acquisition (M&A).
“CEOs of member companies can run day-to-day operations without too many problems, but it will be difficult for them to make important M&A and investment decisions,” said another industry leader. . Scaling up investments is likely to be equally difficult.
There is also a source that “Crown Prince” Lee Jae-yong can still run the Samsung empire while in prison, by receiving summary reports, although many industry experts confirm the level of participation from later. But iron bars certainly have limitations.
When he was jailed for the first time in 2017, Mr. Lee still received essential briefs, and was involved in a number of key decisions. At that time, he decided to disband the Group’s Future Strategy Office, as well as invest 30 trillion won ($ 27 billion) in semiconductor production lines in Pyeongtaek City. year 2021.
The South Korean tech giant’s last big deal came in 2016, when it acquired the American automaker Harman International Industries.
Lee Jae-yong, son of former Samsung Group Chairman Lee Kun-hee, was sentenced to five years in prison in 2017 for bribing former President Park Geun-hye and her best friend Choi Soon-sil. Mr. Lee was released in 2018 after the Seoul High Court reduced his sentence.
However, the Supreme Court of Korea asked to re-adjudicate the case in 2019, on the grounds that Mr. Lee could commit a number of bribery charges that were excluded in the previous ruling. On Monday earlier this week, he was sentenced to 2 and a half years in prison.
Hero(According to Korea Times)
The ‘Crown Prince’ sits in jail, Samsung has a big term
South Korea’s largest conglomerate Samsung faced major difficulties after an appeals court declared 30 months in prison with Vice Chairman Lee Jae Yong on January 18.