Samsung and Lee Jae-yong Breathe a Sigh of Relief...Prosecutors' Investigation Deliberation Committee Decides 'Investigation Suspension and Non-Prosecution Opinion' (Comprehensive)

10 out of 13 Voting Committee Members Recommend 'Non-Prosecution' Opinion

Lee Jae-yong, Vice Chairman of Samsung Electronics, who is under prosecution investigation for allegations of unfair 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@

[Asia Economy Reporter Choi Seok-jin] The Special Committee on Current Issues of the Prosecutorial Investigation Deliberation Committee (Investigation Deliberation Committee), which reviewed whether to indict Samsung Electronics Vice Chairman Lee Jae-yong (52) and others, resolved with a majority vote to recommend 'suspension of investigation and non-prosecution.'

On the 26th, the Special Committee on Current Issues, composed of 14 members selected from various fields including the legal community, academia, media, civic groups, and culture and arts, decided that it was not appropriate to indict Vice Chairman Lee, former Samsung Future Strategy Office Strategy Team Leader Kim Jong-jung, and Samsung C&T for violations such as unfair trading and market manipulation under the Capital Markets Act and violations of the External Audit Act of Stock Companies, and recommended that the investigation into Vice Chairman Lee be suspended.

The Special Committee stated, “After thorough deliberation, the members resolved with a majority vote to recommend suspension of investigation and non-prosecution.”

The Special Committee meeting, which began at 10:30 a.m. at the Supreme Prosecutors' Office in Seocho-dong, Seoul, extended beyond the scheduled time and lasted nearly eight hours.

The Special Committee reported that 14 of the 15 randomly selected members attended the meeting.

Im Si-won, who was elected as the interim chairperson by mutual election in place of former Supreme Court Justice Yang Chang-soo who declined the chairperson position, presided over the meeting.

During the meeting, the continuation of the investigation into Vice Chairman Lee and the decision on whether to indict Vice Chairman Lee, former Team Leader Kim, and Samsung C&T were discussed.

The members reviewed a 50-page opinion document submitted by the investigation team and the defense representatives, listened to oral statements from both sides, and conducted a closed deliberation.

In the vote held after the deliberation, 13 of the 14 attending members, excluding the acting chairperson, participated, and it was reported that 10 voted for 'non-prosecution.'

The prosecution was represented by Deputy Chief Prosecutor Lee Bok-hyun of the Economic Crime Division of the Seoul Central District Prosecutors' Office, Deputy Chief Prosecutor Choi Jae-hoon who conducted the face-to-face investigation of Vice Chairman Lee, and Chief Prosecutor Kim Young-chul of the Uijeongbu District Prosecutors' Office. Vice Chairman Lee’s side was represented by former Busan District Prosecutor Kim Ki-dong and former Seoul Western District Prosecutor Lee Dong-yeol, both of whom are known as 'specialized prosecutors.'

The Special Committee also stated that it referred to the opinion document submitted by the complainant, People's Solidarity for Participatory Democracy, during its deliberations.

The Special Committee announced, “Considering the public’s right to know and the gravity of the case comprehensively, we have decided to disclose the resolution.”

It added, “Going forward, the committee will make every effort to ensure that prosecutorial investigations gain greater public trust and are conducted more objectively and fairly.”

Immediately after the Special Committee’s decision was made public, the Seoul Central District Prosecutors' Office stated, “The prosecution will review the final disposition by comprehensively considering the investigation results so far and the deliberation opinions of the Investigation Deliberation Committee,” leaving open the possibility of a conclusion different from the committee’s opinion.

Samsung’s legal representatives expressed their position, saying, “We respect the decision of the Investigation Deliberation Committee members and thank them for giving Samsung and Vice Chairman Lee Jae-yong the opportunity to focus on corporate activities and overcome the current crisis.”

Meanwhile, with the ‘non-prosecution opinion’ passed by the Investigation Deliberation Committee, the prosecution is inevitably faced with a dilemma.

There is expected to be internal division over whether to overturn the conclusion reached after a 19-month investigation based on the discussion and vote of 14 members (effectively 13, considering the acting chairperson does not have voting rights).

Since the Samsung-related investigation has been coordinated with Prosecutor General Yoon Seok-youl and Prosecutor Han Dong-hoon since the Park Young-soo Special Prosecutor Team, which investigated the ‘state affairs manipulation’ scandal, it is uncertain whether the prosecution will actually give up on indicting despite the Investigation Deliberation Committee’s non-prosecution recommendation.

Of course, if the prosecution indicts Vice Chairman Lee and others contrary to the committee’s opinion, criticism is expected to grow that the system they introduced themselves to ensure objectivity and fairness in the investigation process has been rendered meaningless.

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