South Korea President Pardons Samsung Heir Lee Jae-Yong & Lotte Group Chairman Shin Dong-bin from Jail-Term
12th August 2022 | Hong Kong
South Korea President has pardoned Samsung heir Lee Jae-Yong, Lotte Group Chairman Shin Dong-bin & 2 businessmen from their jail-term. Lee Jae-yong (the heir of Samsung Group is one of South Korea’s richest man with more than $11 billion fortune) had been released from jail on parole in 2021, serving a fraction of his 2.5 years jail term for being convicted of bribery and embezzlement by a South Korean high court in January 2021. The South Korean Justice Ministry made the decision to release Samsung Group heir Lee Jae-yong on parole on the ground of national interest for semiconductors, vaccines after considering the effects of the pandemic on South Korea’s economy and global markets. His parole conditions include 5 years of business restriction and approval for overseas trip. Samsung’s day-to-day operations is not affected by Lee Jae-yong absence, but need him to make major decisions on investments and M&A projects for Samsung. In 2019, a South Korean court had also suspended the remainder of Lotte Group Chairman Shin Dong-bin jail sentence for for bribery charges involving the country’s former president, pending good behavior over 4 years. Lotte Group is the 5th largest conglomerate in South Korea. (Parole ~ permission for a prisoner to be released before their period in prison is finished, with the agreement that they will behave well)
“ South Korea President Pardons Samsung Heir Lee Jae-Yong & Lotte Group Chairman Shin Dong-bin“
Samsung Group Heir Lee Jae-yong Released from Jail on Parole
The South Korean Justice Ministry made the decision to release Samsung Group heir Lee Jae-yong on parole on the ground of national interest for semiconductors, vaccines after considering the effects of the pandemic on South Korea’s economy and global markets. His parole conditions include 5 years of business restriction and approval for overseas trip.
Samsung’s day-to-day operations is not affected by Lee Jae-yong absence, but need him to make major decisions on investments and M&A projects for Samsung. Lee Jae-yong is also under investigation for fraud and stock manipulation.
Samsung Heirs Lee Jae-Yong and Family to Pay $10.7 Billion in Inheritance Tax from $22 Billion Estate
Lee Jae-yong, the heir of Samsung Group is one of South Korea’s richest man with more than $11 billion fortune.
In April 2021, the heirs and family of Samsung including current Vice-Chairman of Samsung Electronics Lee Jae-Yong will have to pay inheritance tax of around $10.7 billion (12 trillion won), for inheriting around $22 billion estate from the late Samsung Chairman Lee Kun-Hee who died in October 2020.
The Lee family plans to pay the full amount of the inheritance tax over a period of 5 years, including reducing the inheritance tax through public donations of arts and medical funding. The $10.7 billion inheritance tax is likely to be paid from stock dividends and possibility of bank loans.
The estate’s collection of antiques and paintings will be donated to the National Museum of Korea and other cultural organisations. The collection includes national cultural assets and paintings by Korean painters such as Park Soo-keun and Lee Jung-seop and 23,000 art pieces including works by artists Marc Chagall, Pablo Picasso, Paul Gauguin, Claude Monet, Joan Miro and Salvador Dali.
For medical funding, the Lee family will donate around $900 million to fund infectious disease research and treatment for children with cancer and rare illnesses.
Samsung – Global Giant and South Korea Chaebol
The late Samsung Chairman Lee Kun-Hee had led Samsung in 1987, following the death of his father Lee Byung-chul, who founded Samsung. The late Samsung Chairman Lee Kun-Hee led Samsung through a massive transformation to become a global electronics giant. Today, Samsung is a global leader in technology, electronics and industry. In 2020, Samsung reported $212.4 billion in revenue and net income of $23.7 billion.
Samsung is also South Korea’s largest chaebol, a term used to describe South Korea’s large, family-run conglomerates that played an important role in the country’s economic development.
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