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Written by Jia Peilin
Source: Beck Street detective (ID: bkjtag)
As the largest multinational group in the world, Samsung will surely have a place.
The Samsung Group, which has been established from poverty and poverty, has been standing at the top of South Korea and even the world for three generations. Although it still controls South Korea or the lifeblood of various industries in the world in many aspects, the crisis cloud from the highest level has not disappeared after its proud back.
Since Li Jianxi, the second-generation leader of SamSung group, did not wake up from coma for a long time due to illness several years ago, Li Zairong has gained the actual control of the leader of SamSung group after a series of scuffles. However, Li Zai Rong seems to be shrouded by a burst of misfortune. In a few short years, countless lawsuits have been filed against him.
He was sued for collusion with Park Geun hye, the company was prosecuted for illegal merger and acquisition, and was prosecuted for violating the law in the process of climbing to the top of Samsung. The cloud of prosecution hanging over Li zaireng has been lingering.
Bring trouble to “girlfriends”
In retrospect, perhaps the most troubled one for Li Zairong is Cui shunshi, park Geun hye’s best friend.
Park Geun hye’s good friends not only let him get close to President Park Geun hye, but also let Samsung get more benefits in China.
However, after Li zaireng became the head of SamSung group, the longest prison sentence also came from her.
As the only son of Li Jianxi, Li Zairong has always attracted much attention. However, on his way to succeed the leader of SamSung group, Li Fuzhen hindered him.
Li Zairong made great efforts to defeat Li Fuzhen and won the throne of the leader of SamSung group. He thought he was on the right track.
But it didn’t work out.
In 2009, Li zaireng was appointed Vice President of Samsung Electronics, a very important company of SamSung group, by Li Jianxi, and was promoted to president one year later. At that time, he was regarded as an important part of the “younger management” by Li Jianxi, chairman of Samsung Electronics. Under the strategy of “rejuvenation”, Li Jianxi accelerated the pace of Li zaireng’s taking over SamSung group. In just a few years, Li Zairong has stepped into the top of SamSung group.
In 2016, after Li Jianxi fell ill and fell into a coma, Li zaireng accelerated his entry into the board of directors of SamSung group and took control of SamSung group.
But in the year when Li zaireng ascended to the top of the throne, the whirlpool of troubles also came.
In October 2016, Cui shunshi, the close friend of President Park Geun hye, was exposed for “cronies interfering in politics”, which caused great repercussions in South Korea. It is intolerable that the president of a country is interfered with by his cronies. After the downfall of Park Geun hye and Cui shunshi, the scandalous transaction between Li Zairong and Cui shunshi also surfaced.
After Park Geun hye came to power, Li Zairong had repeatedly offered bribes to Cui shunshi. He intends to influence President Park Geun hye’s political decision through Cui shunshi. He hoped that by offering bribes, park Geun hye’s government would support the merger of Samsung products and first wool, two Samsung Group companies, so as to greatly reduce the inheritance tax generated by his inheritance of SamSung group.
By bribing Cui shunshi, Li Zairong has indeed climbed into Park Geun hye’s relationship. In September 2014, July 2015 and February 2016, park Geun hye and Li zaireng had three separate interviews. During the interview, park asked Li Zairong to provide sufficient financial support for Cui shunshi and himself in exchange for achieving Li’s goal.
Li Zai Rong’s wave of “good chess” has always made him complacent. According to investigation, Li Zairong has offered bribes as high as 43.3 billion won (about 249 million yuan) to park Geun hye and Cui shunshi.
This bribe is only a drop in the bucket compared with the inheritance tax that Li Zai Rong needs to pay to inherit SamSung group.
Through the way of cross shareholding, the Li family of SamSung group only controls several subsidiaries, that is, it controls the whole huge SamSung group. And the most critical, that is, Samsung products, Samsung Electronics, before the first wool weaving enterprises.
When Lee Jae Rong ascended to the top of the throne, Samsung calculated that if the inheritance tax was paid in accordance with the law, the value of Samsung Electronics and other enterprises controlled by Lee Jae Rong would exceed 11 trillion won, while the inheritance tax in South Korea would be as high as 60%.
From this point of view, the more than 40 billion won that Li Zairong bribed Cui shunshi and park Geun hye is indeed a “drizzle” for the eldest son of the Li family.
But Li was also punished for this “drizzle”.
On January 16, 2017, the South Korean special prosecutor issued an arrest warrant for Li Jae Rong. A month later, on February 17, the South Korean prosecutor’s office arrested Lee Jae Yong. On February 28, he formally filed a lawsuit against him.
During the trial, Li even cried: “I am the victim of the president’s forced investment. Who can refuse the president’s request?”
But crying like this doesn’t get you anything. From April 7 to August 7, a total of 53 court sessions were held in Li’s related cases, with an average of once every 2-3 days. As many as 59 witnesses were summoned and the prosecution even demanded a 12-year prison sentence for Li.
Finally, on August 25, the court made a first instance judgment on Li zaireng and sentenced him to five years’ imprisonment. As soon as he was on the top, he spent nearly a year in prison.
“Hidden willows and bright flowers”
Although Li was sentenced for five years in the first instance, the result was not satisfactory to both sides. Li zairengfang believed that the sentence was too heavy and insisted that he was innocent or misdemeanor. The prosecution believed that it was far from the result of 12 years’ sentence. So both sides jointly filed an appeal.
As a result, Li Zairong, who had just finished his 180 day trial, repeatedly stepped on the court.
The prosecution’s reason is more direct this time, believing that the court’s judgment of first instance “misinterpreted the jurisprudence and wrongly recognized the facts”, which led to the unclear cognition of Li Zairong’s criminal facts.
The prosecution still demanded a 12-year sentence for Li, who demanded complete remission and denial of all criminal suspects. In order to achieve this goal, Samsung changed all lawyers.
Samsung’s move has paid off. After another 4-month trial run, on February 5, 2018, Li Zai Rong’s bribery case ushered in the final judgment of the second instance. The criminal division of the Seoul High Court announced that he was sentenced to two years and six months in prison with a four-year reprieve. Li zaireng was released in court.
After being involved in the bribery case for one and a half years, Li zaireng was finally cleared.
But this is just the beginning.
Lee thought he escaped the sentence this time, but South Korean courts and prosecutors seem to be saying “too naive” to him.
A year and a half after the verdict on bribery was settled, South Korean courts and prosecutors seem to have recalled the details of the case and started to move again.
On August 29, 2019, the Supreme Court of South Korea rejected the judgment of the court of second instance on the bribery case of Lee Jae Rong, successor of SamSung group, and sent the case back for reiteration.
The decision came as a bolt from the blue. Li zaireng never dreamed that nearly two years after the end of the case, it was still found out of the old paper.
This time, the focus of the case is whether the $800000 training horses given by Li Zairong to Cui shunshi’s daughter should be regarded as bribery. And whether other relevant facts should be included in the criminal facts.
Affected by this, Li Zairong even came forward and said: “we will avoid the mistakes of the past again.”. At that time, Samsung was faced with the economic downturn of South Korea, and the trade between Samsung and Japan was affected by national relations.
Li Zairong clearly felt that the Korean government is now full of malice against Samsung, and the government of moon Jae in Wen hated the South Korean oligarchy economy.
As a result, after the Supreme Court’s request for a retrial, Li even announced that the leadership turnover of Samsung Electronics in December was suspended in order to cooperate with the prosecution’s investigation.
Moreover, in May 2020, Li Zairong announced at a press conference that there would be no hereditary system in Samsung Group. He apologized to all the citizens for the company’s operation and said that he had “no idea to inherit the management right of the company to his children”.
Photo caption: Li Zai Rong apologizes source: Yonhap
It has to be said that Li Zai Rong’s “desire for survival” is very strong.
But such a low attitude did not bring peace. The repeated demands of the Supreme Court on this side have not yet been settled. The South Korean Procuratorate on the other side suddenly issued an arrest warrant against Li Jae Rong, accusing him of market manipulation and accounting fraud.
Less than 30 days have passed since Li Zairong claimed that Samsung would no longer be named Li.
But this time the rain came and went quickly. Five days later, Seoul’s central court rejected the prosecutor’s request for an arrest warrant, saying there was no sufficient reason to arrest Li.
That day was like a roller coaster for Li. Fortunately, he survived. At the investigation review meeting at the end of June, 10 of the 13 members suggested that the prosecution should terminate the investigation and not prosecute.
Li Zairong took a breath, but was held back in the middle of the road.
On September 1, the central local prosecutor’s office in Seoul, South Korea, formally sued Lee Jae Rong, vice president of Samsung Electronics and head of SamSung group, accusing him of manipulating shares, violating the capital market law, external audit and violating trust, thus evading taxes for Lee Jae Rong, who succeeded SamSung group.
Three years later, Li Zai Rong still can not escape the accusation that he intends to evade huge taxes. At the beginning, in order to take over Samsung’s business, Li zaireng himself probably knew whether the merger of Samsung’s products and first wool fabric was illegal.
In the past three years, Li zaireng’s “indictments” are thick and thick.
The prosecution has been arresting Li zaireng for bribery, tax evasion and fraud. However, the court’s decision has not satisfied the prosecution. Li zaireng has not lived a “good life” for a few days after he ascended to the top of Samsung.
However, it can be foreseen by naked eyes that the road of Li Zai Rong’s prosecution will continue.
(statement: This article only represents the author’s point of view, not Sina’s position.)