Vantage | Why South Korea needs Samsung and Lee Jae-Yong as its boss

In the domain of legal justice, the balance between strictness and leniency often defines a nation’s judicial system. However, in the case of South Korea, leniency seems to be the prevailing theme, especially when it comes to dealing with corporate giants like Samsung. While China’s courts have been criticised for their strictness, South Korea faces a different problem altogether—one of being too lenient. This leniency was exemplified in a recent verdict involving Samsung’s top boss, Lee Jae-yong.

Genesis of the case The case in question dates back to 2015 when Lee orchestrated the merger of two Samsung affiliates, Samsung C&T and Cheil Industries. Prosecutors alleged that the merger was aimed at consolidating Lee’s power within the company and that he engaged in fraudulent practices to facilitate the deal. However, despite these serious accusations, Lee was acquitted by a court in Seoul, much to the surprise of many observers. This verdict comes as a relief for Lee, considering the tumultuous legal battles he has faced in the past. In 2017, he was sentenced to five years in prison for bribery charges related to offering millions of dollars to former South Korean president Park Geun-hye in exchange for government approval of the merger. Despite the severity of the charges, Lee’s time behind bars was shortlived, as he was released on parole after just 18 months. Furthermore, he was later pardoned by the South Korean president in 2021, raising questions about the integrity of the country’s legal system. To understand how Samsung and its executives seem to evade accountability, one must delve into the company’s immense influence in South Korea. Samsung and its affiliates dominate a significant portion of the country’s economy, comprising 20 per cent of the stock exchange, 18 per cent of the GDP and 17 per cent of total exports. This level of influence extends beyond mere statistics, as Samsung’s presence is ubiquitous across various industries, including healthcare, education, textiles, electronics and construction. Rise of Samsung The origins of Samsung’s rise to power can be traced back to its founder, Lee Byung-chull, who transformed a small grocery trading store into a conglomerate spanning multiple sectors. Leveraging favourable government policies and a protectionist economic environment, Lee expanded Samsung’s reach into banking, insurance, manufacturing, and eventually, electronics. However, this rapid growth was not without controversy, as the company became embroiled in numerous bribery scandals over the years. Despite facing legal scrutiny, Samsung continued to flourish under the leadership of Lee’s son, Lee Kun-hee, who spearheaded a corporate restructuring that emphasized product quality and innovation. However, beneath the surface, Samsung fostered a toxic corporate culture marked by corruption and bribery, with both father and son being implicated in bribery scandals involving high-ranking government officials. Global stature of Samsung Today, Samsung stands as a corporate behemoth, dominating global markets and wielding significant political influence within South Korea. Its status as the world’s leading smartphone manufacturer has cemented its position as a key player in the semiconductor industry, which is crucial to South Korea’s economic ambitions. However, the leniency shown towards Samsung’s executives raises serious questions about the integrity of South Korea’s legal system and its susceptibility to state capture and crony capitalism. While the country may have chosen this path in pursuit of economic growth, it must now confront the consequences of allowing corporate giants like Samsung to operate with impunity. As South Korea continues to navigate its role in the global economy, addressing these systemic issues will be crucial in ensuring fairness and accountability within its judicial system. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.