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Work ban on Samsung chief Lee Jae-yong ‘unclear’: compliance committee

 

Lee Jae-yong (Yonhap)
Lee Jae-yong (Yonhap)

An external compliance monitoring committee on Samsung Electronics and its affiliates concluded on Friday that the restriction on Samsung chief Lee Jae-yong’s employment was “unclear.”

The committee, led by former Chief Justice Kim Ji-hyung, discussed during its regular meeting the ongoing controversy involving the Ministry of Justice’s latest ban on Lee from being employed by Samsung for five years due to his conviction in a bribery scandal involving former President Park Geun-hye.

“With regard to Lee’s employment ban, the committee believes there are unclear parts regarding the conditions and scope of the ban,” it said in a statement. “The committee will advise Samsung Electronics to comply with the particular laws as it proceeds with the needed procedures.”

Lee is now in prison as the Seoul High Court slapped him with a 2 1/2 year sentence in January.

The Justice Ministry notified Lee of the employment ban last month. 

Under laws relating to economic crimes, convicted businesspeople are banned from working for their companies for five years after their release.

Whether it is appropriate to impose the ban on Lee or not remains controversial.

Lee holds the title of vice chairman of Samsung Electronics, but he has not been paid by the company since 2019. He is not a registered director either.

At the annual shareholders meeting on Wednesday, some shareholders demanded Samsung’s board strip Lee of the vice chairman title.

By Song Su-hyun (song@heraldcorp.com)

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