Vice Chairman Lee, also known by his English name Jay Y. Lee, is among the four business leaders who've been granted special pardons by Korean President Yoon Suk-yeol in time for next week's Liberation Day anniversary.
The others are Lotte Group Chairman Shin Dong-bin, Dongkuk Steel Mill Co. Chairman Chang Sae-joo and former STX Group Chairman Kang Duk-soo.
Politicians, including former Korean President Lee Myung-bak, were excluded from the special pardon this time.
“I really appreciate the government’s decision to give me the opportunity to start anew. I also apologize for causing concern to many people,” Lee said in a statement.
“I will work harder to fulfill my duties and responsibilities as a businessman. I will do all that I can to help the national economy through investments and job creation.”
Lee bows before the public after being granted a presidential pardon on Friday. In announcing the government’s special pardons, Justice Minister Han Dong-hoon said: “With an urgent need to overcome the national economic crisis, we have carefully selected for pardons economic leaders who power the national growth engine through active technology investment and job creation.”
Samsung Electronics' whopping 280 trillion won ($220 billion) in sales in 2021 is nearly half of Korea's 2022 national budget of 608 trillion won.
REINSTATEMENT TO ACCELERATE DECISION-MAKING
With Lee’s reinstatement, analysts said Samsung will push ahead with its expansion plans, including heavy investments in key markets such as the US.
Lee, 54, was paroled a year ago after serving 18 months in prison on bribery charges.
Samsung Electronics' chip cleaning room His parole term officially ended on July 29, but he was banned from working, meaning he couldn't take the helm of his conglomerate.
Friday’s presidential pardon will wipe clean his criminal record, allowing him to pursue business activities and travel overseas more freely.
While sitting on cash reserves of almost $100 billion, Samsung has been absent from the M&A market since its $8 billion deal in 2017 to acquire Harman, a US electronics systems maker for automobiles, given that all major decisions across the conglomerate require Lee’s signature.
On Friday, Samsung Electronics rose by as much as 1.3% to 60,700 won following news of his pardon. The stock is still down 21% from a high of 76,800 won in September 2021.
Lee shakes hands with US President Joe Biden at the chipmaker's Pyeongtaek plant Lee’s reinstatement comes at a time when Samsung, the world's largest maker of smartphones and memory chips, is fighting an uphill battle with global competitors.
In the foundry market, Samsung is struggling to narrow its gap with sector leader Taiwan Semiconductor Manufacturing Co. (TSMC), while Intel Corp. trails closely behind with ambitions to become the world’s top foundry player by 2025.
Apple Inc., a key Samsung rival in the smartphone segment, is now betting on content platforms such as Apple Music and iCloud while moving to enter the electric vehicle market.
With Lee back at the helm of the conglomerate, analysts said Samsung could soon announce big moves, including major executive reshuffles and investments.
LEGAL RISKS NOT YET OVER
Although Lee is cleared of his criminal record on his bribery case involving former Korean President Park Geun-hye, he is not entirely free of judiciary risk: He stands trial in a separate accounting fraud case involving the 2015 merger involving Samsung affiliates.
Prosecutors indicted him over the case in a Seoul court in September 2020. His first trial is underway.
Industry officials said if the case goes to the Higher Court and the Supreme Court, it may take up to three years before the final ruling is out.
Lotte Group Chairman Shin Dong-bin Meanwhile, Lotte Group Chairman Shin on Friday thanked President Yoon and his government while vowing to do whatever he can to help the economy.
"We sincerely thank the government's and the people's decision to grant a pardon, and Chairman Shin Dong-bin and the staff of Lotte will contribute to overcoming the complex global crisis," Lotte said in a statement.
Shin was sentenced to a suspended two-and-a-half-year prison term in October 2019 in a bribery case also involving former President Park.
Lotte Biologics Co. is currently looking for a site in Korea to build a 1 trillion won plant for the biopharmaceutical contract development and manufacturing organization (CDMO) business.
Lotte Aluminium Co. has doubled the capacity of its copper foil plant in Hungary, while Lotte Chemical Corp. has set up a joint venture with a US firm to develop lithium metal anode materials.
(Updated with remaining legal issues surrounding the Samsung heir and Lotte Group leader Shin’s future business plans)
Write to Ji-Eun Jeong, Shin-Young Park and Jong-Kwan Park at jeong@hankyung.com In-Soo Nam edited this article.
