Minbyun and People's Solidarity: "Samsung's Unfair Merger Stems from Lee Jae-yong's Greed... Must Be Strictly Punished" (Update)

Press Conference Urging Punishment of Lee Jae-yong

On the afternoon of the 8th, members of two organizations, including the Lawyers for a Democratic Society (Minbyun) and People's Solidarity for Participatory Democracy, held a press conference at the Minbyun office in Seocho-gu, Seoul, urging punishment for Samsung Electronics Vice Chairman Lee Jae-yong's criminal charges.
Photo by Yonhap News

[Asia Economy Reporter Kim Suwan] Civic groups have called for strict punishment of Samsung Electronics Vice Chairman Lee Jae-yong, who has been subject to an arrest warrant request on charges of involvement in various illegal activities during the succession process of Samsung's management rights.

The Lawyers for a Democratic Society (Minbyun) and People's Solidarity for Participatory Democracy held a press conference titled "Press Conference Urging Punishment for the Criminal Charges Against Samsung Electronics Vice Chairman Lee Jae-yong" on the 8th at the Minbyun Hall in Seocho-gu, Seoul, stating, "Vice Chairman Lee Jae-yong is accused of committing crimes that harm sound corporate management and the realization of a just society."

Lee Sang-hoon, an executive committee member of the Economic and Financial Center at People's Solidarity for Participatory Democracy (and a lawyer), who presented at the event, pointed out, "The 2015 unfair merger case between Samsung C&T and Cheil Industries, which occurred for the succession of Vice Chairman Lee's management rights, remains an unprecedented case that is a comprehensive example of the so-called 'three major corporate crimes' including embezzlement, violation of the Capital Markets Act, and bribery."

He added, "This originated from Vice Chairman Lee's personal greed to reduce the funds needed for the succession of management rights, leaving little room for mitigation in terms of motive," and stated, "Strict punishment is inevitable for the law-disregarding acts that ignored compliance management."

Kim Nam-geun, a former co-chairman of Minbyun and policy committee member of People's Solidarity for Participatory Democracy, also criticized, "During the Samsung C&T merger process, Samsung is accused of manipulating Samsung BioLogics' accounting to achieve a merger ratio favorable to Vice Chairman Lee and destroying related evidence."

The Citizens' Coalition for Economic Justice (CCEJ) also criticized in a statement on the same day, saying, "The actions of Vice Chairman Lee and related executives are a serious matter that shakes the foundation of the capital market and market economy."

Lee Jae-yong, Vice Chairman of Samsung Electronics, who is under prosecution investigation for allegations of illegal succession of management rights related to the merger of the former Samsung C&T and Cheil Industries, as well as accounting fraud allegations involving Samsung Biologics, is entering the courtroom to attend the warrant hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 8th.
Photo by Kang Jin-hyung aymsdream@

Meanwhile, Judge Won Jeong-sook, in charge of warrants at the Seoul Central District Court, began the pre-arrest detention hearing (warrant substantive examination) for Vice Chairman Lee, former Samsung Future Strategy Office Chief Choi Ji-sung (69, Vice Chairman), and former Future Strategy Office Strategy Team Leader Kim Jong-jung (64, President) at around 10:30 a.m. on the same day.

This is the first time in two years and four months since Vice Chairman Lee was detained in February 2017 for the state affairs manipulation scandal, served one year in prison, and was released on probation after the appeal trial.

The decision on detention is expected to be made late on the night of the 8th or early morning of the 9th.

This content was produced with the assistance of AI translation services.