LEE'S EMPLOYMENT RESTRICTION CASE

[Anchor Lead]

One of the terms of Samsung Vice Chairman Lee Jae-yong’s parole was employment restriction. Police have been investigating for the past nine months the allegation that Lee has been working for pay since his release, but tossed the case over to the prosecution after concluding that he was clear of suspicion.

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Samsung Electronics Vice Chairman Lee Jae-yong had been locked up for bribery and embezzlement. As soon as he was paroled in August 2021, he headed straight to the Samsung headquarters in southern Seoul. He convened a meeting of company executives and met with the President. He even went on business trips to the U.S., the Middle East and Europe. A civic group reported Lee in September for violating the employment ban of his parole. According to the Act on the Aggravated Punishment for Specific Economic Crimes, when a person is convicted, he or she is banned from being employed for five years. The civic group accused Lee of engaging in corporate management activities.

[Soundbite] Lee Jae-yong(Samsung Electronics Vice Chair(Jun. 7, While leaving for Europe)) : "(What do you think about the accusation of violating employment restriction?) ....."

Police have been looking into Lee’s salary details, meetings and even how he has been paying for his flights. Employees of the Samsung human resources team have been questioned many times as well. But the police concluded that Lee’s activities cannot be regarded as “employment.” The key criteria was whether he had been paid for his work. But Lee has not been paid, so his activities do not constitute employment. This finding is similar to what then-Justice Minister Park Beom-kye had said about the matter in August.

[Soundbite] Park Beom-kye(Then-Justice Minister(Aug. 2021)) : "It’s hard to say that he is employed given that he hasn’t been paid for years, has been a non-standing member and an unregistered executive."

Kumho Petrochemical Chairman Park Chan-koo, convicted of breach of trust, was also suspected of violating the employment restriction condition because he became CEO while he was on probation. But the police decided to stop investigating the case.

[Soundbite] Prof. Kim Woo-chan(Korea Univ. Business School) : "It’s only right to ban him from working at a company he caused harm. But that punishment has been nullified, rendering the restriction useless."

Samsung issued no official statement about the latest investigation.