Quan Xiaoxing
"Samsung Group is preparing to dissolve its future strategy room, a move that will allow each subsidiary to make independent decisions based on their own conditions. This approach marks a new path for Samsung, one it has never taken before," said an official statement.
On August 25, the Seoul Central District Court issued a verdict in the bribery case involving Lee Jae-yong, the head of Samsung. The court sentenced him to five years in prison. However, the court did not pursue charges related to his meeting with former President Park Geun-hye. Despite this, the prosecution’s allegations were largely confirmed, including bribery, corruption, asset transfer, concealment of proceeds, and perjury to Congress.
As the judge delivered the sentence, Li Zai-yong was visibly emotional, shedding tears. When prosecutors had requested a 12-year sentence, Li, who usually remained composed, choked up, saying, "If I can't resolve the immediate mistrust and misunderstanding, then I am not worthy of being the head of Samsung."
Following the first-instance judgment, media attention on Samsung intensified. As one of South Korea's largest tech companies, Samsung is now under the spotlight during the post-Lee Jae-yong era, drawing significant public interest.
Experts highlighted the "3·5 rule" in South Korean chaebol cases, where initial sentences often result in around five years, but subsequent appeals reduce the term to less than three years, sometimes ending in probation. This pattern reflects concerns about leniency toward powerful conglomerates.
Kim Jong-mo, a legal expert, noted that the bribery charge was central to the case. Without clear evidence of bribery, other charges like asset transfer or income concealment would lack foundation. The court accepted the prosecutors’ claims, emphasizing a strong economic connection between Park Geun-hye and Choi Soon-sil.
Jin Chengmo also pointed out that the restructuring of Samsung's equity was aimed at helping Lee gain control over the group. In his view, the judgment affirmed the nature of the case as a "collusion between political and economic power." While there were some regrets regarding specific details, the first trial was seen as a win for the prosecution.
However, Zhu Zhenheng, another financial analyst, argued that the trial revealed deeper issues: the collusion between chaebols and the judiciary. He criticized the merger between Samsung and First Knitwear, claiming it involved undervaluing Samsung’s assets and harming minority shareholders.
Zhu also mentioned the "3·5 rule," highlighting public frustration with repeated leniency toward large chaebols. After the verdict, both Samsung and prosecutors expressed dissatisfaction, filing appeals. Samsung claimed innocence, while prosecutors argued the sentence was too light.
Historically, high-profile chaebol leaders have received lighter sentences. For example, Daewoo’s Kim Yong-chang was initially sentenced to 15 years but later reduced to 10. Similarly, Lee Kun-hee, former Samsung chairman, received a 7-year sentence but was eventually released after 3 years with a 5-year probation period.
Lee Jae-yong’s leadership style has been described as low-key, yet he gained attention as the "Galaxy Ambassador" after giving a Samsung phone to a reporter during a family event. Born into a wealthy family, Li was groomed as a successor and studied abroad before returning to Samsung in 2001.
His rise coincided with challenges, including profit declines and the Galaxy Note7 crisis. Public perception of him grew more negative, especially after scandals involving his son and the inheritance plan, which aimed to avoid high inheritance taxes.
In response to pressure, Samsung announced the dissolution of its future strategic room, a long-standing department that centralized decision-making. Employees noted that this shift marked a move toward decentralization, allowing subsidiaries more autonomy.
Analysts believe that while Li remains involved in major decisions, Samsung is transitioning toward a more distributed management model. This change could help the company adapt to a rapidly evolving market, though challenges remain.
Overall, the trial has sparked broader discussions about the role of chaebols in South Korea and the need for systemic reforms. While Samsung continues to dominate the economy, its future may depend on how well it navigates these changes and adapts to a more transparent and competitive environment.
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