Conglomerate Parole
As Kim Moo-sung, the ruling Saenuri Party’s leader, argued that a special pardon or a parole for businessmen are necessary, whether Chey Tae-won, chairman of SK Group, will benefit from this is drawing attention.
Kim said on Dec. 24, “As the nation’s economy is struggling, those who need to work should work. Investment is impossible without the owner’s decision. So, as far as the pardon or the parole is concerned, the faster the better.” He also showed his strong will, saying “I have intention to convey my thoughts to the Cheongwadae (Presidential Office) or the government.”
Chey was indicted on charges of embezzling funds from a subsidiary of his SK Group in 2008 and he was given a four-year jail sentence on appeal in Feb. He has now fulfilled the requirements for the parole, serving one-third of the sentenced years in prison. He has served a sentence for the longest period as the head of a conglomerate and his prison term ends in September 2017.
With even Kim referring to a special pardon and a parole following Hwang Kyo-ahn, the Minister of Justice, and Choi Kyung-hwan, Deputy Prime Minister for Economic Affairs, SK Group now has high expectations for the release of its chairman.
The business community is keeping an eye on Hanwha Group, which is going uphill after its chairman came back. Hanwha Group Chairman Kim Seung-yeon, who completed 300 hours of community service order, succeeded in the acquisition of four affiliates of Samsung Group including its chemical and defense businesses. Also, he is playing a role in major projects including New City Project in Iraq, stimulating the company.
An official from the industry said, “It is practically impossible to decide whether to make any investment or business restructuring without the lead of the owner.”
There are, however, some variables. President Park Geun-hye has said, “There will be no special pardons of tycoons” since she took office. Also, due to the recent so-called “Nut Rage” incident of Cho Hyun-ah, former vice-president of Korean Airlines, there is widespread public anger over tycoons at the moment.
A personnel in the legal circle said, “CJ Group Chairman Lee Jae-hyun, who is terminally ill, and Taekwang Group Chairman Lee Ho-jin are hoping to be pardoned but it doesn’t seem easy for the moment considering the current public sentiment and the approval rating for President. Given the struggling economy, Chey is highly likely to be pardoned first in time for New Years Day or March 1.
(An earlier version of this story mistakenly read that Chey Tae-won was likely to be pardoned. We apologize for the error - Ed.)