Lee Jae-yong's Final Appeal Also Difficult... Unable to Break the 'Judicial Shackles' Continuing for 4 Years

Samsung Electronics Vice Chairman Lee Jae-yong is heading to the courtroom on the afternoon of the 18th at the Seoul High Court in Seocho-gu, Seoul, attending the retrial sentencing hearing for the 'state corruption' case.
[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] The 'state affairs manipulation' case involving Samsung Electronics Vice Chairman Lee Jae-yong reached its final stage on the 18th with the conclusion of the retrial after remand. If Vice Chairman Lee appeals again, the Supreme Court will review the case, but considering that the case has already undergone a full bench ruling once, it is highly likely that the retrial judgment will be finalized as is. On the same day, Vice Chairman Lee was sentenced to 2 years and 6 months in prison and was taken into custody in court.

Vice Chairman Lee was detained and indicted in February 2017 on charges including bribery, where he allegedly requested former President Park Geun-hye and Choi Seo-won (formerly Choi Soon-sil) to assist with the succession of Samsung Group's management rights. The first trial recognized 8.9 billion KRW as bribery, including 7.2 billion KRW for equestrian support for Choi's daughter Jung Yoo-ra and 1.6 billion KRW for sponsoring the Korea Winter Sports Gifted Center, sentencing him to 5 years in prison. However, the second trial recognized only 3.6 billion KRW as bribery and sentenced him to 2 years and 6 months in prison with a 4-year probation.

The Supreme Court full bench overturned and remanded the case in August 2019, ruling that the 3.4 billion KRW for horse purchases for Jung Yoo-ra and the 1.6 billion KRW sponsorship for the Winter Sports Gifted Center, which the appellate court had acquitted, should be considered bribery. Since the amounts recognized as guilty differed among the first trial, second trial, and Supreme Court, the prosecution and Vice Chairman Lee's side have been engaged in legal disputes over sentencing during the retrial after remand.

At the first hearing of this case, the court ordered Vice Chairman Lee to establish a monitoring body for Samsung's compliance management. The court also indicated that the operation of the compliance monitoring committee would be reflected in Vice Chairman Lee's sentencing. Accordingly, Samsung established and operated the compliance monitoring committee chaired by former Supreme Court Justice Kim Ji-hyung early last year. However, the committee failed to gain recognition for its effectiveness and sustainability, ultimately resulting in Vice Chairman Lee's detention in court.

Vice Chairman Lee's side may appeal the ruling to the Supreme Court again. However, such an appeal is not easy. Under the Criminal Procedure Act, appeals on the grounds of inappropriate sentencing are not allowed in cases with imprisonment sentences under 10 years. Even if an appeal is made claiming legal errors in the retrial judgment, it is unlikely to change the outcome. The case has already undergone a full bench ruling by the Supreme Court, and the retrial court based its final decision on that ruling. In fact, the retrial judgment on this day is likely to be the final decision.

Even if this ruling is finalized, the trial for the separate charge of 'illegal succession of management rights' will continue. Vice Chairman Lee was indicted without detention last September on charges including unfair trading and market manipulation under the Capital Markets Act, and breach of duty. The prosecution believes that the 2015 merger between Samsung C&T and Cheil Industries was orchestrated by Samsung Group's Future Strategy Office to secure Vice Chairman Lee's management rights. On the other hand, Vice Chairman Lee's side maintains that the merger was legally conducted out of business necessity.

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