Samsung heir Lee apologises for succession scandal that exposed nexus with government
The heir to the Samsung empire bowed in apology Wednesday for company misconduct including a controversial arrange for him to ascend to the leadership of the world’s most significant smartphone maker.
Lee Jae-yong is vice-chairman of Samsung Electronics and was jailed for five years in 2017 for bribery, embezzlement and other offences regarding the the scandal that brought down South Korean president Park Geun-hye.
The 51-year-old premiered a year down the road appeal but happens to be undergoing a retrial.
“Our technology and products are being hailed as first-class however the public gaze towards Samsung still remains harsh,” Lee said. “This is my fault. I apologise.”
Lee bowed 3 x before flashing cameras at a Samsung Electronics office in Seoul, where reporters sat apart under coronavirus distancing rules.
He'll not allow his children to succeed him at the firm, he said in steady tones, swallowing occasionally.
“I will be sure that there will be forget about controversy over the succession of management,” Lee said, adding: “I'll never take any actions that go against the law.”
Wednesday’s apology came at the request of Samsung’s compliance committee, which oversees the firm’s transparency in its corporate dealings.
Lee has effectively been at the helm of the sprawling Samsung group since his father and group chairman Lee Kun-hee was left bedridden by a coronary attack in 2014.
The court case centred on millions of dollars the Samsung group paid Park’s secret confidante Choi Soon-sil, allegedly for government favours including ensuring a smooth transition for Lee to succeed his ailing father.
The scandal highlighted shady connections between big business and politics in South Korea, with the ousted president and her friend accused of taking bribes from corporate bigwigs in exchange for preferential treatment.
Samsung Electronics is the flagship subsidiary of the group, which is by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the world’s 12th-largest economy.
Its overall turnover is the same as a fifth of the national gross domestic product in fact it is imperative to South Korea’s monetary health.
Chairman Lee Kun-hee is listed as South Korea’s richest man-and the world’s 65th-by Bloomberg Billionaires, with a fortune estimated at $15.7 billion, while Lee Jae-yong has a separate report on his own, and a net worth of $5.7 billion.
‘Worker Rights’
In March, the Samsung compliance committee-which was create in response to a court order-said many “disgraceful” incidents relating to the Samsung Group were associated with an alleged succession scheme for Lee and advised him to apologise publicly.
In addition, it recommended that Lee address Samsung’s previous “no labour union” policy.
For nearly 50 years Samsung successfully avoided the unionisation of its workers-sometimes adopting ferocious tactics according to critics-until last November.
“I sincerely apologise to everyone who has been hurt by issues involving Samsung’s labour union policy,” Lee said.
The business will guarantee workers’ rights and act relative to employment regulations, he added.
Samsung reported hook fall in first quarter net profits last month at 4.88 trillion won ($4 billion), citing impacts of the coronavirus pandemic.
However the firm-which saw functions suspended at 11 overseas assembly lines-warned of further falls to come as consumer demand is “significantly” hit by the condition.
