Economic 5 Organizations "Lift the Employment Restriction on Lee Jae-yong"

Difficulties in Crisis Response Amid Rapid Cooling of the Semiconductor Market

On February 5, 2018, Lee Jae-yong, Vice Chairman of Samsung Electronics, was released from Seoul Detention Center following the appellate court ruling on the 'state affairs manipulation' case.

[Asia Economy Reporter Choi Dae-yeol] On the 11th, the heads of major domestic economic organizations met with Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki to request the lifting of the employment restriction on Lee Jae-yong, Vice Chairman of Samsung Electronics, who will soon be released.

At the meeting chaired by Deputy Prime Minister Hong, the heads of the five major economic organizations attended: Chey Tae-won, Chairman of the Korea Chamber of Commerce and Industry; Koo Ja-yeol, Chairman of the Korea International Trade Association; Sohn Kyung-shik, Chairman of the Korea Employers Federation; Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business; and Kang Ho-gap, Chairman of the Korea Federation of Medium-sized Enterprises. Since their first meeting in April, they agreed to meet frequently to activate communication between the government and the business community, and this meeting was arranged accordingly.

Earlier, these five economic organizations actively voiced their opinions, including jointly submitting a petition for clemency for Vice Chairman Lee to the Blue House in April. Lee is scheduled to be released on the 13th according to relevant regulations, but as he will be on parole, a full return to management is difficult.

There has also been ongoing controversy over the employment restriction under the Act on the Aggravated Punishment of Specific Economic Crimes (Special Economic Crimes Act). According to this law, after serving a sentence, one cannot be employed by a company closely related to the crime for five years. The business community interprets that since Lee has worked as an unpaid non-registered executive since 2019 and maintained his title even during imprisonment, the employment restriction does not apply. However, civic groups argue that based on this, Lee should relinquish his ‘Vice Chairman’ title.

The business community believes that to quell such controversy, the lifting of Lee’s employment restriction should follow. They also argue that amid the recent intensification of the semiconductor supremacy war and the rapid cooling of the semiconductor supercycle, flexible application of the employment restriction regulation is necessary.

Woo Tae-hee, Vice Chairman of the Korea Chamber of Commerce and Industry, said, "One of the main reasons for Lee’s parole is the challenging domestic and international economic situation, which the government has openly acknowledged," adding, "We hope that related ministries will apply regulations related to management activities, such as meetings with overseas partners and visits to global production sites, flexibly in the future."

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