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Samsung Electronics Vice Chairman Lee Jae-yong emerges from the Seoul Detention Center in Uiwang

Samsung Electronics Vice Chairman Lee Jae-yong, 50, was freed on Feb. 5 with a suspended prison sentence in his appellate court ruling. In its exoneration, the court said it could find “no evidence of typical government-business corruption” in the inappropriate transactions between South Korea’s top political leader and biggest chaebol group, describing payments as a “component of social contribution activities.” Observers in and around the judicial committee criticized the ruling as turning back the clock on judicial justice to before the 2016 government interference scandal.

Hon. Judge Jeong Hyeong-sik of Seoul High Court’s 13th criminal division issued a ruling on Feb. 5 overturning the five-year prison sentence against Lee in his first trial and sentencing him instead to two years and six months in prison suspended for four years. Former Samsung Group Future Strategy Office director (vice president) Choi Gee-sung, 67, and deputy director (vice chairman) Jang Choong-gi, 64, who had been sentenced to four years in prison in their first trial, were also freed with sentences of two years in prison suspended for three years.

Two Samsung Electronics officials who avoided jail time in their first trial – former president Park Sang-jin and sports planning team director Hwang Seong-su, 56 – similarly received reduced sentences of two years in prison suspended for three years and 18 months suspended for two years, respectively.

With its Feb. 5 ruling, the court completely reversed the first trial court’s conclusions of “unethical connections between political and business interests.” Critics blasted the court for effectively siding with Samsung’s “victim cosplay” claims, concluding that the group – despite its deep involvement in the scandal – had effectively been forced to bow to political pressure. The court described the case as a matter of “foremost political leader Park Geun-hye coercing executives at the Samsung Group, South Korea’s largest business group,” with Choi Soon-sil seen as having “pursued private gains out of a misguided sense of maternal affection.”

It also restricted the meaning of “government-business collusion” as applying only to cases of “reckless business expansions based on secret transactions with government authorities, large illegal or illicit loans, and the provision of public funds using taxpayer money.”

“Mr. Lee and the others did not make any requests related to specific issues and merely responded passively to former President Park’s demands,” the court concluded.

The court also accepted Samsung’s argument that a service contract with Choi’s side was not intended initially as solely for the purpose of supporting Choi’s daughter Jung Yoo-ra, and only became bribery when the support for Jung was exceeded. On this basis, it recognized only 3.6 billion won (US$3.3 million) in bribes – far short of the 43.3 billion won (US$39.4 million) mentioned in the indictment – which cleared the way for a suspended sentence.

The court further deviated from the first trial ruling in concluding that there was “no management rights succession effort for Mr. Lee’s sake” and “no evidence that Mr. Lee requested assistance.” On this basis, third-party bribery charges related to the Korea Winter Sports Elite Center and the Mir and K-Sports Foundations were not recognized, as they were founded on improper requests in connection with the overarching issue of the management rights succession.

“We respect the court’s courage and wisdom,” said Lee In-jae, an attorney for Lee Jae-yong’s side, after the ruling.

Emerging from Seoul Detention Center, Lee Jae-yong said, “I am once again very sorry for failing to act in a good way.”

“I will consider things more carefully in the future,” he said.

The special prosecutor criticized the ruling as “partial and insincere.”

“We intend to appeal to the Supreme Court regarding clear errors in the appellate court’s ruling to ensure that the sentence conforms to the genuine facts,” the special prosecutor said.

By Hyun So-eun, staff reporter

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