(Reuters) – Samsung Electronics Co Ltd vice president Jay Y. Lee was sentenced to two and a half years in prison for bribing an associate of former president Park Geun-hy to enlist support for a merger of two affiliates to strengthen his hold on the group.
Reactions to Monday’s ruling are shown below.
BAE SANG-KUN, EXECUTIVE DIRECTOR OF THE KOREAN INDUSTRIES FEDERATION
“We deeply regret (the court’s) decision as Vice President Jay Y. Lee helped bolster the South Korean economy with his bold investments and job creation during the economic crisis caused by the coronavirus pandemic.”
“The lack of managerial leadership could delay decision-making processes to start new businesses, potentially being left behind in global competition. We hope that Samsung can wisely overcome this crisis and move forward with continued growth.
THE KOREA BUSINESS FEDERATION IN A DECLARATION
“The corporate management community is seriously concerned about a leadership vacuum at the Samsung Group due to the sentence that sentenced him to a prison sentence.”
“With the unprecedented economic uncertainty caused by COVID-19 and the acceleration of protectionist policies around the world, negative impacts on the economy and industries in general would be inevitable as delays in business decisions and significant investments are expected to due to the lack of management leadership in one of the country’s global companies. “
PARK SANG-IN, SEOUL NATIONAL UNIVERSITY PROFESSOR AND CORPORATE GOVERNANCE EXPERT:
“Although the court decision sent Lee back to jail, the decision still appears to be too lenient when it comes to the country’s conglomerate … today’s verdict won’t help correct the track record of the country’s courts offering leniency to tycoons. of business “.
“Many fear that Samsung faces challenges as there is no owner in the management; however, Samsung managed to perform well when Lee was last jailed. “
LEE SEUNG-WOO, EUGENE INVESTMENT & SECURITIES ANALYST IN SEOUL
“The share price of Samsung Electronics has risen quite sharply recently, and a big difference from the past is that the share held by retail investors has increased significantly … Retail investors seem to react sensitively to the ruling. When looking at the forums recently, the views on Vice President Lee (from retail investors) have been quite positive. “
Reporting by Heekyong Yang, Jihoon Lee, Choonsik Yoo and Joyce Lee. Editing by Gerry Doyle