Samsung Billionaire Vows To End Family Rule Of The Company As He Apologises for Corruption Scam

The 51-year-old billionaire while apologizing said the company will guarantee workers’ rights and act in accordance with employment regulations.

Vice-Chairman of Samsung Electronics Lee Jae-yong speaks during a news conference in Seoul on May 6, 2020. - The heir to the Samsung empire bowed in apology May 6 for company misconduct including a controversial plan for him to ascend to the leadership of the world's largest smartphone maker. (Photo by KIM HONG-JI / POOL / AFP)

Seoul, May 8: In a rare apology by Samsung’s heir Lee Jae-yong came out openly in the public accepting the mismanagement in the family-controlled firm related to succession and making a vow that he would not pass on the baton of his empire to his children. In a statement televised across the nation, the South Korean businessman issued an apology in a press conference. “I sincerely apologise to everyone who has been hurt by issues involving Samsung’s labour union policy,” Lee said. The 51-year-old billionaire further said the company will guarantee workers’ rights and act in accordance with employment regulations. The committee also recommended that Lee looks into the Samsung’s previous “no labour union” policy. Here is more about the leader and the scandal. Who is Lee Jae-yong? Lee Jae-yong is vice-chairman of Samsung Electronics.  Lee Kun-hee is among the South Korea’s richest man—and 65^th richest in the world according to Bloomberg Billionaires. His total fortune is estimated at $15.7 billion, while the businessman has a separate listing of his own with a net worth of $5.7 billion. Why did he become unpopular? The company’s compliance committee in March which was formed in response to a court order has asked the chairman to issue public apology as he was found involved in “disgraceful” incidents involving the Samsung Group were linked to an alleged succession scheme for Lee. Lee had also been in jail for five years in 2017 for bribery, embezzlement and other offences in connection with the scandal that brought down South Korean president Park Geun-hye. It was Lee’s first public comment since a Supreme Court ruling on a bribery case in August raised the possibility of a return to prison for the disgraced scion. The company has managed to prevent unionisation of its workers almost 50 years implementing hard tactics until last November. When did Lee take the helm of the company? Lee took over the responsibility of the Samsung Group after his father and group chairman Lee Kun-hee had been bedridden following a heart attack in 2014. Samsung Electronics is a subsidiary of the group,the biggest conglomerates run by business families and dominating businesses in the world’s 12^th-largest economy. According to agency reports, the company's overall turnover is equivalent to a fifth of the national gross domestic product. In fact, the company contributes significantly to the South Korea’s economic health. What did the scandal expose? The scandal brought into limelight the nexus between big business and politics in South Korea, with the ousted president and her friend accused of taking bribes from bigwigs to offer preferential treatment. (With inputs from agencies)