Samsung Electronics Chairman Jay Y. Lee could be sent back to prison for 5 years if prosecutors have their way. That would be in addition to a $356,000 fine that they've sought during the retrial of Samsung's top man on chargers relating to a controversial merger that saw the Lee family extend its control over the conglomerate.
South Korea's most valuable company is fighting many battles on many fronts. Jay Y. Lee publicly acknowledged these challenges during the final hearing of the retrial, requesting leniency from the court so that he may focus on the enormous task at hand of turning things around at Samsung.
Jay Y. Lee is confident of Samsung overcoming its challenges
Addressing the judges during the hearing, Jay Y. Lee said that he's aware of the concerns about Samsung's future, including a sense among people that Samsung has a fundamental crisis. He acknowledged the “immense expectations people have for Samsung,” while expressing confidence that the company will overcome its difficulties.
Samsung's dealing with poor earnings, conflicts with labor unions, and technological gaps in some of its most lucrative product segments. Its foundry division is finding it difficult to get clients, leading to almost a billion dollars in loss this past quarter. Jay Y. Lee recognized that the challenges Samsung faces now are “tougher than ever,” while reassuring the court that “I will do everything I can for Samsung to continue earning the public's love and trust.”
“I sincerely ask for the opportunity to fully focus on fulfilling my responsibilities,” he added, requesting the court for leniency in the matter. Jay Y. Lee was previously acquitted for all charges in this case but prosecutors had immediately filed an appeal against the court's decision.
There's a sense among market watchers that Jay Y. Lee's absence from the top job at Samsung, during his 18-month stint in prison and subsequent limitations on his ability to run the conglomerate's affairs have cost Samsung dearly, as many major business decisions were delayed due to his absence. Samsung can ill-afford another period of managerial limbo at a time where it needs all hands on deck to turn things around.
