Lee Jae-yong, Vice Chairman of Samsung Electronics / Photo = Choi Hyuk, reporter Hankyung.com [email protected]
Jaeyong Lee, Vice Chairman of Samsung Electronics (Photo) Is dismissed from the chairmanship of the Samsung Life Insurance Foundation, which he inherited from his father, former chairman Lee Kun-hee. This is because a two-year and six-month prison sentence was confirmed for the’Gukjeong Nongdan case’, resulting in disqualification as a foundation director.
According to the Seoul Metropolitan Government and Yongsan-gu Office, who supervise and supervise the Samsung Life Insurance Public Interest Foundation on the 21st, the foundation is taking steps to dismiss Lee Jae-yong’s chairmanship. It is reported that the foundation will hold a board of directors next month and handle the dismissal of Vice Chairman Lee.
Reasons for disqualification occurred due to the confirmation of imprisonment for Gukjeong Nongdan
The’Social Welfare Business Act’ stipulates that “a person who has been sentenced to a prison sentence of more than a safe and has not passed three years from the date the execution is terminated or the execution is exempted” cannot become an executive such as a director of a social welfare corporation. According to the law, Vice Chairman Lee Jae-yong cannot return to the Foundation for three years after expulsion. The city of Seoul is planning to notify the Foundation of this information through official documents in the near future.
An official from Seoul explained, “As a result of self-examination, it has been concluded that even if, like Vice Chairman Lee Jae-yong, is sentenced to imprisonment and is serving in prison, it is a reason for disqualification of executives under the Social Welfare Business Act.
The foundation’s position is that “no decision has been made on the issue of hosting the board of directors or the appointment of the chairman.” However, an official at Yongsan-gu Office, the main office of the foundation, said, “(Vice Chairman Lee Jae-yong) responded to the ward office that the Foundation was aware that there was a reason for disqualification as a director of the Foundation, and was considering dismissal.”
If the Foundation does not deal with the dismissal agenda for Vice Chairman Lee at the board of directors next month, the Yongsan-gu Office will provide administrative guidance for the Foundation to dismiss Lee Jae-yong’s chairmanship or review administrative measures such as dismissal orders.
Samsung Electronics Vice Chairman Lee Jae-yong, who is suspicious of illegal management succession, is attending the Seoul Central District Court in Seocho-gu, Seoul on June 8 last year to receive an interrogation (warrant substantive examination) before being arrested.
Seoul City to notify reasons for disqualification through official letter
The Samsung Life Insurance Public Interest Foundation, the largest public welfare foundation in Korea with assets of only trillions of won, is Samsung’s representative welfare foundation, established in 1982, and operates the Samsung Seoul Hospital and Samsung Noble County to conduct medical and elderly welfare projects.
Vice Chairman Lee Jae-yong took over the position of Chairman of the Foundation in May 2015 from former Chairman Lee Kun-hee, former Chairman of the Board. The appointment of the chairman at the time, which took place for the first year of former chairman Lee Kun-hee, was evaluated as a symbolic measure that formalized vice chairman Lee Jae-yong’s succession of management rights to the Samsung Group.
Vice Chairman Lee Jae-yong filled his first three-year term as Chairman of the Foundation and reappointed Chairman in May 2018. According to the Social Welfare Business Act, the term of office for directors is set for three years, but there is no limit to the number of consecutive terms. In addition to the Samsung Life Insurance Public Interest Foundation, Samsung has four public interest foundations, including the Samsung Welfare Foundation, the Samsung Cultural Foundation, and the Hoam Foundation.
The chairman of the Samsung Welfare Foundation is chaired by former Samsung C&T President Lee Seo-hyun, Vice Chairman Lee Jae-yong’s younger brother, and former Prime Minister Kim Hwang-sik is also the chairman of the Samsung Cultural Foundation and Ho-Am Foundation.
Jo Jun-hyuk, reporter at Hankyung.com [email protected]