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South Korea pardons Samsung's Lee

Joyce Lee and Soo-hyang Choi and Heekyong YangReuters
Jay Y Lee welcomed the pardon and vowed to work hard for South Korea's economy. (AP PHOTO)
Camera IconJay Y Lee welcomed the pardon and vowed to work hard for South Korea's economy. (AP PHOTO) Credit: AP

South Korean President Yoon Suk-yeol has pardoned Samsung Electronics vice-chairman Jay Y Lee, with the justice ministry saying the business leader was needed to help overcome a "national economic crisis".

The pardon is largely symbolic, with Lee having being on parole since August 2021 after serving 18 months in jail for bribery in a scandal that led to massive protests and brought down then-president Park Geun-hye in 2017.

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

"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 reporters on Friday.

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Lee, an heir of Samsung's founding family, welcomed the decision and vowed to work hard for the national economy "with continuous investment and job creation".

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

Lee had been sentenced to 30 months in prison for bribing Park and her close confidante, who both were sentenced to lengthier prison terms, to win government support for a 2015 merger between two Samsung affiliates that tightened Lee's control over the corporate empire.

Park herself was pardoned late last year by her successor, Moon Jae-in, who struggled to follow through on campaign vows to clean up business and politics.

While business groups welcomed the pardon for Lee, civil rights groups criticised Yoon's pardons for businessmen.

"The Yoon Suk-yeol administration ... is ultimately just aiming for a country only for the rich," People's Solidarity for Participatory Democracy said.

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.

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

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

However, Lee's legal risks persist due to an ongoing trial where he faces charges of fraud and stock manipulation.

Reuters with AP

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