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| ▲ Samsung Electronics Vice Chairman Lee Jae-yong is heading to the court on the afternoon of January 18, attending a hearing for the revocation of the case of “Gukjeong Nongdan” held at the Seoul High Court in Seocho-gu, Seoul. The first criminal division of the Seoul High Court sentenced Vice-Chairman Lee, who was charged with bribery and other charges, to two years and six months in prison. Vice-Chairman Lee, who was being tried in a state of disability, was issued a warrant on that day and was arrested in court. | |
| Ⓒ Yonhap News |
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‘Outdoor management’.
The word reappeared inside and outside the business world after the Ministry of Justice’s notification of employment restrictions on the 15th to Samsung Electronics Vice Chairman Lee Jae-yong. This is because, according to the legal phrase that employment is restricted for five years after his brother’executed’, it was interpreted that management was possible during’in execution’. At the same time, criticism has been raised as to whether it is realizing the law to run a company by a person who has been imprisoned for corporate management.
In fact, the restriction on employment by Vice Chairman Lee is a mechanical measure following the conclusion of the trial pursuant to Article 14, Paragraph 1 of the Specific Economic Crimes Aggravated Penalty Act. This is a continuous procedure for Vice-Chairman Lee being sentenced to two years and six months in prison for bribing the company by embezzling 8.6 billion won in the government’s state-run Nongdan repatriation trial. However, the controversy did not stop only on whether or not the prison was managed. This is because there is no possibility that the Ministry of Justice will lift Vice Chairman Lee’s employment restrictions.
Former Minsaeng Party lawmaker Chae Lee-bae, who has always raised issues on related issues, such as publishing a’white paper on chaebol crimes’ at the time of the 20th National Assembly and promulgating a law to increase employment restrictions for heads of law, defined this controversy as a’play of words’. The intent of the law is to’get your hands off management’, but it is not common sense to participate in management while paying the price. Samsung Electronics has not yet made an official position on the controversy.
Representative Chae is on the 18th <오마이뉴스>In a conversation with the company, “If you want to run out of the law so far, you may need legislation to prevent this, but there is no end to stop it with the law.” He said, “You must have a firm position from the board of directors to prevent it.”
At the same time, he came up with the story of “Articles of Incorporation,” which is in SK Telecom and not in Samsung Electronics. SK Telecom has nailed down the company’s articles of incorporation, saying,’You cannot serve as a director when the sentence of a sentence of more than the safeguard is confirmed. While comparing this, Chae Jeon said, “In fact, the reality of Korean corporate governance, which should be included as a rule, is backwards.”
Rep. Chae said, “There were some comments asking Lee to go to the United States (without regulation), but the United States rather prohibits employment by the Securities and Exchange Commission itself if the manager commits a betrayal or embezzlement.” If the limit) was severe, it was more severe, not less.”
In the case of Samyang Foods, where the Ministry of Justice approved the employment of a manager who committed embezzlement last year because of a’management gap’, it criticized that “the government is not aware of the purpose of the legislation.” He pointed out, “No matter how well the law is made, the person who decides what to do, cannot operate it properly.”
“The board of directors leans on Lee Jae-yong’s judgment… an opportunity to prove their will to comply”
-The story of Samsung Electronics Vice Chairman Lee Jae-yong’s management in prison is coming out.
“I am playing around with the interpretation of the law. From the purpose of the legislation, of course, employment should be restricted until the end of the sentence after receiving the sentence. (Restriction) Because there is no starting point, management is possible during the period of the sentence. It was interpreted and, in fact, conventionally admitted to this, so the word “incarcerated management” came into being. If the Ministry of Justice started operating (by notification of employment restrictions) with the privately-cultured Special Economics Act Article 14, after the sentence was confirmed ( Chief) It’s right to get your hands off management.”
-Maybe a more detailed law revision is needed.
“If you want to run out of the (law) so far, you may need legislation to prevent it. There is no end to stop it all. Honestly, the role of the board of directors is to prevent people who have committed illegal activities with company money from participating in management. Even if the law was made, how would the executives find out if they were to run the company with the judgment of Vice Chairman Lee? Fundamentally, the board of directors should have a firm stance on the illegal management. You have to make your own efforts, such as specifying that you do not engage in any management.”
-What about other companies?
“SK Telecom is not allowed to serve as an executive if a person who has been sentenced to more than a confinement in the articles of incorporation. Sovereign (who was the second largest shareholder) requested an improvement in its governance structure and entered as a result of the agreement. In fact, it is very natural. The reality of Korean corporate governance, which must be nailed by regulations, is backwards.”
-Is there any case of participating in management again even in the notification of employment restrictions?
“The former President of Samyang Foods Kim Jeong-soo received a notice of restriction of employment after receiving a notice of restriction of employment due to violation of the Special Economics Act. In fact, the notice of restriction of employment is a mechanical procedure that naturally proceeds when the sentence is executed. .”
-Some people in the business community argue that Lee is not a registered executive and is not subject to employment restrictions because of his unpaid status.
“What is the meaning of employment? This content has already been controversial since the decision of SK Chairman Choi Tae-won. SK also announced an event that Chairman Choi was unpaid and not employed, or that Chairman Choi would return the money received from the company to society. But, isn’t it possible to run a business in a state of employment. It’s not just whether you are paid or have a job title, but just by working at a company. This controversy itself is funny.”
“Samsung Electronics in Silence, One Shareholder Consciousness”
-What is the biggest problem with the management of the prison?
“What if a general employee, not the general manager, embezzled company money and got caught and went to jail? Would you re-employ this person? But how can the executives do it? Moreover, the chief executive is the person who has the greatest responsibility. It is a privilege to enjoy. It is because of the wrong view that the chief and the company are a common destiny, and that the chief executive is the best.”
-In the case of Samyang Foods, the Ministry of Justice granted approval for employment because of concerns about’management gaps in the absence of a total number of days’. How do you see the reason for this approval?
“The Ministry of Justice is obsessing the purpose of legislation. All of the legislative, administrative, and judicial laws of our country are very backwards aware of illegal management. That is why companies are also demanding it for granted. Various efforts to fix the private law to fix it I activated it through… No matter how well the law is made, what do I do?
-How about overseas?
“Most foreign countries (in developed countries) do not have the head of the chaebol, and in the case of the United States, if the (manager) commits a betrayal or embezzlement, the Securities and Exchange Commission (SEC) prohibits (employment). Vice-Chairman Lee said to go to the United States (unregulated). Lee Chang-min, deputy head of the Economic Reform Coalition, also left a post on Facebook, but if you go to the United States (the employment restriction for embezzlement) is severe, it is not less severe (deputy director Lee on his Facebook page on the 17th, with the SEC and the SEC in the Enron pre-accounting account). He mentioned the case of Jeffrey Sculling, who received a permanent ban on management and directors of listed companies by the court.)”
-Samsung internals, such as the Compliance Committee, are not responding much.
“Because we are ahead of the general shareholders’ meeting, I would not notice it. There may be a problem at the shareholders’ meeting, and it is not possible to push it because it has given almost approval for employment in practice. However, Vice-Chairman Lee apologized to the public for compliance. Didn’t you promise to fulfill your role? If it wasn’t for a show to get less punishment ahead of the judgment, in the current situation, showing compliance with (employment restrictions) even within the boundaries of the law is the way to practice compliance management.”