[ad_1]
Seoul, South Korea – When US President Joe Biden visited South Korea in May, his first stop was a giant Samsung Electronics semiconductor factory south of Seoul.
Serving as Biden’s tour guide was Lee Yong, the head of Samsung, South Korea’s largest conglomerate, which has ramped up chip production in recent years in a fiercely competitive sector.
The optics of the visit were key for Lee, who, like many South Korean businessmen, has a checkered past. The appearance with Biden was part of Lee’s image-rehabilitation process following his felony conviction, analysts say.
That process culminated with South Korean President Yun Suk-yeol naming Lee among those receiving a presidential pardon on Friday to mark Independence Day, the anniversary of Japan’s 1910-45 occupation of Korea.
Lee’s presence at the factory and the U.S. president’s optics of prioritizing Samsung’s technology “reduced public anger by emphasizing Samsung’s high-tech output and dominance in the world market,” said Kim Se-wan, a professor of economics at EUHA. Women’s University in Seoul told Al Jazeera.
Lee’s apology was not unexpected. Presidents routinely grant pardons for the holiday, which falls on Monday, and in previous years business leaders found guilty of corruption or unfair business practices are among those granted clemency. Lee’s late father, former Samsung chairman Lee Kun-hee, has received presidential pardons twice.
This year’s list of pardon seekers includes other high-profile business figures such as Kang Duk-soo, former chairman of trading and ship repair conglomerate STX Group, and Chang Sae-jun, chairman of Dongkuk Steel Mill Co.
Before the formal announcement on Friday, Yeon, the standard-bearer of the conservative People’s Power Party, said he hoped the pardon would be “an opportunity for all our people to come together and overcome the economic crisis”. 19 Epidemic.
Samsung’s Lee was sentenced to five years in prison in 2017 for bribing then-president Park Geun-hye as part of a corruption scandal that rocked the country and led to Park’s ouster.
Lee served 19 months in prison before being paroled last year. The pardon is significant because it removes any uncertainty about Lee’s potential role at the company and clears the way for him to assume the position of Samsung Group chairman.
Samsung has tentacles spread throughout the South Korean economy and is the largest employer, leading many to view it as just another company in the country, but something of a national icon.
It is the world’s top manufacturer of memory chips and is working hard to compete with semiconductor leader Taiwan Semiconductor Manufacturing Company in the founding sector.
“Positive impact on the economy.”
Supporters of Lee’s apology hailed the decision as a key role for Samsung in the global race for chip supremacy and a recognition of the industry’s importance to South Korea’s export-based economy.
“Samsung’s core businesses, such as semiconductors, require large and risky investments, so timely decisions by top management are important,” said Professor Kim. “In this sense, the pardon will have a positive effect on the economy.”
In a July poll by the current affairs magazine Sisine, 69 percent of respondents said they supported a pardon for Lee.
As the head of the country’s largest company, Lee attributed the strong support for amnesty to the public perception that Lee contributes to the economy.
When Samsung patriarch Lee Kun-hee received a second presidential pardon in 2009, then-President Lee Myung-bak confirmed the decision as necessary for the businessman to participate in South Korea’s bid to host the 2018 Winter Olympics.
Former president Lee, who is not related to the Samsung family, was himself an unsuccessful candidate for the last round of amnesty, later convicted and jailed for corruption.
For detractors, Samsung’s continued ability to avoid accountability for serious crimes sends a dangerous message to the corporate leaders who control the economy.
“Amnesty weakens the rule of law, and makes collective leaders seem above the law,” Yang Junseok, an economics professor at Catholic University, told Al Jazeera.
A Samsung Electronics Workers’ Union issued a statement opposing the pardon, saying the pardon was a tacit endorsement of the company’s anti-union stance.
In a statement, the group said, “Lee Jae-yong’s apology marks the end of Samsung’s whitewashing strategy, which will discredit those responsible.”
With Lee now a free man, South Koreans are waiting to see if there will be any recession. In a statement on Friday, Lee said he respects the expectations of the government and the people and will “contribute to the economy through continued investment and job creation.”
Yang said, at least in the short term, Lee will make moves that will boost South Korea’s economy.
“Samsung should continue with its promised investments because Lee feels obligated to do something morally or economically to improve the situation,” Yang said.
With Lee pardoned, Yun, a career prosecutor, may be trying to create a positive economic stimulus, albeit modest. Yoon’s administration has been mired in scandals and missteps just three months into his tenure. Earlier this month, his approval rating dropped to 29 percent, down from 44 percent in June.
Having entered office with no prior political experience, Yoon has confirmed the fears of some critics that he was unprepared for the country’s top job.
The choice of the education minister sparked continued outrage following his recent resignation following the announcement of a policy to lower the school age by one year, and a public apology for heavy rains in Seoul this week that led to more than one flash flood. A dozen deaths.
While facing general pressure, Yoon is unlikely to take much flak for his decision to pardon Samsung, analysts say.
“Lee’s apology is consistent with South Korean business culture,” Geoffrey Kane, author of “Samsung Rising” and senior fellow at Critical Technologies at Lincoln Network, told Al Jazeera.
Previous presidents, most notably Yoon’s predecessor Moon Jae-in, have made announcements about reducing the power of Samsung and other corporations, but ultimately asserted their dominance in South Korean business.
“Korean leaders have made many attempts to reduce their power or break up conglomerates, but all have failed because they are so critical to the economy,” Cain said. “Their vertical integration means they control the entire supply chain, from raw materials to finished chips, ships and products.”
“The chaebol may engage in corruption and abuse of power, but they are stable, strong and resilient to economic challenges,” he added.
[ad_2]
Source link
