Prosecutors Seek Advice from Economic Experts on Possible Non-Indictment of Vice Chairman Lee Jae-yong

Request for Witness Investigation Email Sent
Unusual Ahead of Chairman's Prosecution
Related Materials Including Thesis Also Collected and Reviewed
Broad Investigation on Prosecution and Economic Impact
Likely to Conclude Before Mid-Level Executive Personnel Changes
Possibility of Non-Prosecution Decision

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 allegations of accounting fraud at Samsung Biologics, is entering the courtroom to attend the warrant hearing held on the 8th at the Seoul Central District Court in Seocho-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyung-min] It has been confirmed that the prosecution, which is deliberating whether to indict Samsung Electronics Vice Chairman Lee Jae-yong (52) on suspicion of 'illegal succession of management rights,' has recently been seeking advice from economic experts, drawing attention to the background of this move.

It is highly unusual for the prosecution to seek opinions from economic experts ahead of judicial action against the head of a major conglomerate. Business and legal circles interpret this as the prosecution possibly leaving open the option of non-indictment for Vice Chairman Lee, increasing focus on the conclusion the prosecution will announce.

According to multiple prosecution officials on the 5th, the Economic Crime Criminal Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Bok-hyun) has been inviting prominent domestic experts in finance and economics, including university professors, from the 31st of last month until the 14th of this month to hear their opinions on the 'merger between Samsung C&T and Cheil Industries' and the 'Samsung Biologics accounting fraud' cases.

The investigation team sent a batch email around the 27th of last month requesting expert witness interviews to gauge their willingness to participate.

Professor Lee Byung-tae (60) of the KAIST Business School, who received the email but declined to participate in the investigation, stated, "I understand that the prosecution contacted several experts, and one or two of them visited the Seoul Central District Prosecutors' Office for questioning."

In addition to expert advice, the investigation team is reported to have collected and reviewed related materials such as graduate theses. They have broadly investigated not only whether the Samsung Group's merger and accounting practices were illegal but also the potential impact on the Korean economy if Vice Chairman Lee were indicted. Once this information is compiled, the investigation team plans to make a final decision on whether to indict Vice Chairman Lee.

The investigation team's move to seek opinions appears to have been significantly influenced by the recommendation for suspension of investigation and non-indictment received from the Prosecution Investigation Deliberation Committee.

On the 26th of last month, the investigation team received a majority recommendation from the Prosecution Investigation Deliberation Committee to suspend the investigation and not indict Vice Chairman Lee and others.

Subsequently, while considering whether to accept the committee's recommendation, the investigation team reportedly decided to seek external expert opinions. This consultation with experts may also have been seen as a way to publicly demonstrate that the prosecution is not ignoring the committee's recommendation.

Furthermore, it is known that during the Seoul Central District Prosecutors' Office chief prosecutors' meeting held around mid-month to gather opinions from frontline prosecutors on Vice Chairman Lee's case, a proposal was made to seek expert opinions.

The prosecution's decision is expected to be made within this month. Inside and outside the prosecution, there are talks that the decision on whether to indict Vice Chairman Lee will be made before the mid-level prosecutor personnel reshuffle, following the senior executive personnel changes at the level of chief prosecutors or above scheduled for this week.

Meanwhile, Vice Chairman Lee's side is reportedly preparing a large legal defense team in anticipation of a possible indictment, however unlikely.

It is expected that major law firms such as Kim & Chang and Law Firm Hwawoo, along with lawyers who are former chief judges, will participate in Vice Chairman Lee's defense.

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