[Reporter’s Notebook] The Stopped 'Geom-ui Clock'

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@

[Asia Economy Reporter Ki-min Lee] It has been 48 days?just one day short of 49 days?since the Supreme Prosecutors' Office's Prosecutorial Investigation Deliberation Committee recommended the suspension of investigation and non-prosecution for Samsung Electronics Vice Chairman Lee Jae-yong. The 49-day period is considered significant, as it is traditionally believed to be the time during which the soul of the deceased remains in the afterlife awaiting final judgment, making it by no means a short duration.

Concerns have arisen both inside and outside the business community that "time is passing like torture for Samsung." Following the court's dismissal of the arrest warrant for Vice Chairman Lee on June 9 and the subsequent recommendation from the Investigation Deliberation Committee on June 26, legal and business circles expected the prosecution to swiftly conclude the case.

However, the clock of the Seoul Central District Prosecutors' Office's Economic Crime Division, known as the "reaper of the business world," has stopped since then. Meanwhile, companies are struggling in a global business environment where the future is unpredictable. Although the non-face-to-face (untact) industry is evolving due to the spread of COVID-19, major countries have fallen into negative growth this year because of the overall economic downturn affecting all industries. Factors constraining companies, such as the intensifying US-China trade dispute and Japan's export restrictions, have become constants rather than variables. Economic figures unanimously describe this as "a major crisis where it would not be surprising if companies collapse at any moment."

The morale of Samsung employees met on the ground is indescribable. There are even complaints that Samsung, once known as the number one company, has now become a burdensome name. Samsung Electronics is posting decent results despite the COVID-19 crisis. However, compared to competitors, it cannot be considered superior. The US's Intel, competing for the global number one or two position in semiconductors, and Taiwan's TSMC, a foundry powerhouse, are generating profits similar to or even exceeding Samsung's. The current management performance of Samsung is the result of investments and research and development (R&D) efforts made from as far back as ten years ago to several years ago. To continue growing, this cycle must persist. If Samsung's management clock does not function properly due to judicial risks, the consequences will negatively affect not only Samsung but also the overall Korean economy.

Considering that investigations typically conclude two weeks after the Investigation Deliberation Committee's recommendation, the time for the prosecution to make a decision has long passed. Of course, given the rarity of non-prosecution decisions for suspects against whom arrest warrants have been requested, the prosecution's deliberation is understandable. However, it is very clear that the time for the prosecution to make any decision has long elapsed.

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