South Korea's President, Yoon Suk-yeol, has pardoned Samsung Electronics vice-chairman Jay Y Lee on Friday, with the nation's Justice Ministry saying the business leader was needed to help overcome a "national economic crisis".
The pardon is largely symbolic, with Lee already out on parole after serving 18 months in jail for bribery during his time leading the world's biggest smartphone and memory-chip maker.
However analysts said the pardon means Lee should be able to undertake business activities more freely and could herald some big moves from Samsung.
"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 said in a briefing.
In a report by Yonhap news agency, the heir of Samsung's founding family welcomed the decision and vowed to work hard for the national economy.
Also pardoned by pro-business President Yoon was Lotte Group chairman Shin Dong-bin, who was sentenced to two-and-a-half years in prison after being charged with bribery.
"We sincerely thank the government's and people's decision to grant pardon, and Chairman Shin Dong-bin and staff members at Lotte will contribute to overcoming the complex global crisis," the company said in a statement.
Back in business
Even before receiving the presidential pardon, Lee had returned to the limelight, appearing with President Yoon and US President Joe Biden on a visit to Samsung's Pyeongtaek chip-production facilities in May.
He has also visited Europe in June to meet ASML Holding NV chief executive Peter Wennink and discuss adopting key high-end chip equipment.
Analysts — such as Park Ju-gun from Leaders Index — have long expected decisions on major merger and acquisition projects and investments once Lee was reinstated, with company sources saying such decisions should only be made by Lee.
"This removes the employment restriction Lee was technically under," he said.
"And projects that were being pursued by Samsung — such as major M&A or investments — these could be tied to the pardon. There's a high chance that announcements will be made going forward."
Last November, Samsung decided on Taylor, Texas, as the site of a new, $17 billion chip-manufacturing plant.
While experts believe Lee could now more freely participate in management, Lee Kyungmook, a professor at Seoul National University's Graduate School of Business, said his legal risks still persist, due to an ongoing trial where he faces charges of fraud and stock manipulation.
"With his trial, Lee could face a fresh jail term, if convicted. However, the presidential pardon gives him some flexibility to handle big management issues for now," he said.
Top Samsung executives have hinted earlier this year at potential upcoming acquisition activity.
Samsung Electronics has not conducted a high-profile deal since it completed its purchase of audio electronics maker Harman for $8 billion ($8.6 billion) in 2017.
Although macroeconomic factors — such as a demand downturn — may weigh on investment decisions, Samsung has a huge war chest.
Samsung Electronics' cash balance increased slightly, to 125 trillion won ($134 billion), as of the end of June, up from 111 trillion a year earlier.
Reuters
