Major Foreign Media Report Lee Jae-yong Indictment "Prosecutors' Chances May Not Be High"

Samsung Electronics Seocho Building / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Changhwan Lee] Foreign media have shown great interest in the prosecution decision made by the prosecution regarding the allegations of illegal succession of management rights by Samsung Electronics Vice Chairman Lee Jae-yong. Major foreign media focused on the prosecution's unusual decision to proceed with prosecution despite the recommendation of the Investigation Review Committee, and some have also assessed that the prosecution's chances of winning are low.

The New York Times (NYT) in the United States reported on June 1 (local time) the fact that Vice Chairman Lee was indicted without detention, stating, "The prosecution may not have decisive evidence in the case and the chances of winning may not be high."

The NYT added, "Previously, the court dismissed the prosecution's arrest warrant for Vice Chairman Lee, and the Investigation Review Committee also opposed prosecution, stating there was no evidence to consider him guilty," adding, "Skepticism about this case is growing in Korean society."

Foreign media also showed high interest in the prosecution's unusual decision not to follow the results of the Investigation Review Committee, which it created itself. The Wall Street Journal (WSJ) in the United States emphasized, "Despite the Investigation Review Committee, composed of external experts from various fields including the legal community, recommending the suspension of the investigation, the prosecution's insistence on prosecution is unusual."

The WSJ reported that although the committee's recommendation is not binding, this is the first time the prosecution has ignored the committee's recommendation. Bloomberg News in the United States explained, "The Investigation Review Committee recommended that the prosecution stop the investigation and not indict Vice Chairman Lee," adding, "Although the recommendation is not binding, it reflected public support for Samsung, the most important company in Korea."

There was also an assessment that the prosecution's recent decision could have negative effects not only on Vice Chairman Lee personally or Samsung but also on the Korean government. This is because the claims of Elliott, a US hedge fund that filed an investor-state dispute settlement (ISD) lawsuit against the Korean government, and the prosecution's claims have some similarities.

In July 2018, Elliott filed an ISD lawsuit against the Korean government, claiming, "The Korean government unfairly intervened by mobilizing the National Pension Service in the merger of Samsung C&T and Cheil Industries, causing Elliott, a shareholder of Samsung C&T at the time, to suffer damages of at least $770 million."

A leading British media outlet reported, "The prosecution's recent decision will strengthen Elliott's claims in the ISD lawsuit." The media also cited an anonymous investor comment, stating, "With this prosecution, Vice Chairman Lee may not be able to focus on the company's growth opportunities," and pointed out, "Major decisions such as large-scale mergers and acquisitions (M&A) could be delayed."

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