LEE JAE-YONG'S EMPLOYMENT BAN

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The justice ministry has notified the jailed Samsung de facto chief Lee Jae-yong about restrictions to his employment. However, some pundits believe he can still oversee company management behind bars. But a recent court ruling involving a separate case has supported the ministry’s stance as the court decided that employment restrictions should apply immediately from the time a conviction is made.

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Samsung Electronics Vice Chairman Lee Jae-yong is to be behind bars until July next year for his role in a massive political corruption scandal. He was told last week of restrictions to his employment in accordance with a law that restricts employment for five years after a jail term ends for those convicted of embezzlement of over 500 million won. Some in the business circle have interpreted this regulation as allowing the tycoon to oversea managerial affairs while in prison. However the justice ministry believes Lee should step down as vice chairman immediately, adding a request for his dismissal is even possible. In a different trial, a court last week gave a verdict that supports the ministry’s position. Kumho Petrochemical Chairman Park Chan-koo was earlier slapped with a 3 year sentence suspended for 5 years on charges of embezzling over 13 billion won. He filed a lawsuit against the justice ministry arguing the period of suspended sentence is not subject to employment restrictions. But the court sided with the ministry. The court ruled that restrictions should apply immediately from the time of conviction to serve the purpose more effectively. The court also gave guidelines on calculating the restriction period saying five years should be added to the duration of the prison sentence and two more years to a suspended sentence.

[Soundbite] Noh Jong-hwa(Lawyer(Solidarity for Economic Reform)) : "Though the legal provision does not clearly specify the starting point of restrictions to employment, the judiciary has determined that it begins from the time of conviction."

However if Lee Jae-yong files a separate request for employment approval, a justice ministry committee will hear the argument and determine whether there may be special circumstances to approve his request.