Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

S.Korea’s Yoon pardons Samsung’s Jay Y. Lee to counter ‘economic crisis’

by
August 12, 2022
in Investing News
0
S.Korea’s Yoon pardons Samsung’s Jay Y. Lee to counter ‘economic crisis’
0
SHARES
17
VIEWS
Share on FacebookShare on Twitter

SEOUL — South Korea’s President Yoon Suk-yeol pardoned Samsung Electronics Vice Chairman Jay Y. Lee on Friday, with South Korea’s Justice Ministry saying the business leader was needed to help overcome a “national economic crisis.”

The pardon is largely symbolic, with Mr. Lee already out on parole after serving 18 months in jail for bribery relating to his time leading the world’s biggest smartphone and memory-chip maker.

However, the pardon should mean Mr. Lee will be able to carry out business activities more freely and could herald some big investments from Samsung, analysts said.

“With urgent needs to overcome the national economic crisis, we carefully selected economic leaders who lead the national growth engine through active technology investment and job creation to be pardoned,” Justice Minister Han Dong Hoon told a briefing.

Mr. Lee, a scion of Samsung’s founding family, welcomed the decision and vowed to work hard for the national economy.

“I will contribute to the economy with continuous investment and job creation and give back the people and government’s regards,” Samsung said in a statement, citing Mr. Lee.

Also pardoned by pro-business President Yoon was Lotte Group chairman Shin Dong-bin, who was sentenced to a two-and-a-half-year prison sentence on charges of bribery.

“We sincerely thank the government’s and people’s decision to grant pardon, and Chairman Shin Dong-bin and staff members at Lotte will contribute to overcoming the complex global crisis,” Lotte said in a statement.

BACK IN BUSINESS

Tech- and export-dependent South Korea is grappling with soaring inflation and signs that Asia’s fourth-largest economy is struggling with weakening demand, poor sentiment and slowing spending.

Analysts have long expected decisions on major M&A projects and investments once Lee was reinstated, with company sources saying such decisions should only be made by Mr. Lee.

“This removes the employment restriction Lee was technically under,” said Park Ju-gun, head of research firm Leaders Index.

“And projects that were being pursued by Samsung, such as major M&A or investments, these could be tied to the pardon. There’s a high chance that announcements will be made going forward.”

Even before receiving the presidential pardon, Mr. Lee had returned to the limelight, appearing in May with President Yoon and US President Joseph R. Biden, Jr., when they visited Samsung’s Pyeongtaek chip production facilities.

He has also visited Europe in June to meet ASML Holding NV CEO Peter Wennink, discussing the adoption of key high-end chip equipment.

Last November, Samsung decided on Taylor, Texas as the site of a new $17 billion chip plant.

While experts say Lee could now more freely participate in management, his legal risks still persist due to an ongoing trial where he faces charges of fraud and stock manipulation.

“With his trial, Lee could face a fresh jail term if convicted. However, the presidential pardon gives him some flexibility to handle big management issues for now,” said Lee Kyungmook, a professor at Seoul National University’s Graduate School of Business.

Top Samsung executives have hinted earlier this year at potential upcoming acquisition activity. Samsung Electronics has not conducted a high-profile deal since it completed its purchase of audio electronics maker Harman for $8 billion in 2017.

Although macroeconomic factors such as a demand downturn may weigh on investment decisions, Samsung has a huge war chest.

Samsung Electronics’ cash balance increased slightly to 125 trillion won ($95.13 billion) as of end-June, from 111 trillion a year earlier.

Shares in Samsung Electronics were trading up 1% versus benchmark KOSPI’s 0.1% rise. Lotte Corp shares were down 0.8%. — Reuters

ShareTweetPin

Related Posts

Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case
Investing News

Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case

August 23, 2022
ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts
Investing News

ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts

August 23, 2022
Malaysian trade official urges PHL to sign up for RCEP  
Investing News

Malaysian trade official urges PHL to sign up for RCEP  

August 23, 2022
Next Post
Cryptocurrency tycoon Ben Delo in legal challenge over data watchdog

Cryptocurrency tycoon Ben Delo in legal challenge over data watchdog

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Forterro significantly expands UK market footprint with Wise acquisition

Forterro significantly expands UK market footprint with Wise acquisition

July 28, 2022
Investing in the country’s transition into a circular economy

Investing in the country’s transition into a circular economy

June 10, 2022
Reflections of domestic tourists

Reflections of domestic tourists

July 4, 2022
US envoy to China expects ‘zero COVID’ policy to persist into 2023

US envoy to China expects ‘zero COVID’ policy to persist into 2023

June 17, 2022
Virgin Orbit mission success brings UK launch another step closer

Virgin Orbit mission success brings UK launch another step closer

July 2, 2022
PHL likely to hit growth goals — Moody’s Analytics

PHL likely to hit growth goals — Moody’s Analytics

August 10, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.