Samsung's Investment Plans to Be Affected
President Moon Jae-in decided not to give a special pardon to Samsung Electronics vice chairman Lee Jae-yong. Samsung Group’s investment and M&A plans are predicted to be affected significantly.
The latest large-scale acquisition by Samsung Electronics was in 2016. These days, Samsung Electronics is facing various difficulties, including soaring raw material prices and logistics costs, chip production yield issues and smartphone performance limitation issues.
According to industry sources, its difficulties are increasing in the absence of the owner’s leadership. This is why major economic organizations and Samsung Electronics subcontractors recently filed petitions for his pardon.
Uncertainties regarding Samsung Group’s future are not disappearing at all as trials are ongoing. The vice chairman appeared in court 126 times from March 2017 to April 29 this year. His corporate succession-related trials take place every Thursday. In addition, Samsung Biologics accounting scandal-related trials have taken place every three weeks since March this year.
This frequency means that the vice chairman’s overseas business trips for important business decisions are practically impossible as of now. At present, he cannot go abroad without parole and approval from the Ministry of Justice.