Lee Jae-yong, Final Hearing of the Retrial This Week... Judicial Risk Resolution Remains a 'Long Road'

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] The final hearing of the retrial for Lee Jae-yong, Vice Chairman of Samsung Electronics, on bribery charges related to the state affairs manipulation scandal will be held on the 30th. This effectively marks the conclusion of the retrial after one year and five months since it began. However, with the first trial regarding allegations of illegal succession of management rights having started last October, Samsung’s judicial risks remain unresolved for now.

According to business circles and the courts on the 27th, the Seoul High Court Criminal Division 1 (Presiding Judge Jung Jun-young) plans to hold the final hearing for Lee’s retrial on the 30th. Lee will also appear as a defendant on that day.

During the final hearing, the special prosecution team led by Park Young-soo will present their sentencing requests for Lee and the other defendants, while Lee’s defense team will deliver their closing arguments to the court.

Lee is expected to state his position regarding the charges and circumstances during the final hearing. According to the Criminal Procedure Act, the court must give the defendant and their counsel an opportunity to present their final statements before concluding the trial.

After the final hearing, the court is expected to deliver its verdict as early as the end of next month, or at the latest before the third week of February next year, which is the judicial personnel reshuffle period. If neither the special prosecution nor Lee’s side files an appeal, the bribery trial related to the state affairs manipulation scandal will come to a close after more than four years.

However, with the first trial concerning allegations of illegal succession of management rights now underway, Samsung’s judicial risks are expected to continue for several more years. Previously, the prosecution had investigated for about one year and ten months since November 2018, following the Financial Services Commission’s Securities and Futures Commission’s accusation of Samsung Biologics for accounting fraud. Subsequently, the prosecution indicted Lee and other senior Samsung executives without detention on charges including violations of the Capital Markets Act.

The first trial for the succession allegations held its first preparatory hearing on October 22, and the second preparatory hearing is scheduled for January 14 next year. Given the complexity and special nature of the case, preparatory hearings typically occur two to three times, so a formal trial is expected to begin around March.

Since this trial is also likely to proceed over several years and dozens of sessions, it is expected to significantly impact Lee’s management activities. Lee has appeared 81 times over four years for the state affairs manipulation trial. This means his appearances in Seocho-dong are more frequent than his on-site management visits to Samsung’s business locations.

A business insider said, "Once the formal trial for the succession of management rights begins, Lee will have to attend court for several more years, which means Samsung’s judicial risks are effectively recurring," adding, "In these times of unprecedented uncertainty, Samsung’s competitiveness could be weakened."

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