Jailed Samsung chief granted release on parole

Thejailedde facto leader of the giantSamsunggroup will be released earlyonparolethis week, South Korea's justice ministry said Monday, easing concerns over a possible leadership vacuum at the conglomerate.

Lee Jae-yong,the 188th richest person in the world according to Forbes, with a net worth of $12.4 billion, is currently serving a two-and-a-half year prison sentence for bribery, embezzlement and other offences in connection with the corruption scandal that brought down ex-South Korean president Park Geun-hye.

But calls for his earlyreleasefrom both politicians and business leaders have grown in recent months over concerns about the impact of the coronavirus pandemiconthe South Korean economy, the 12th-largest in the world.

His freedom will ease concerns over decision-making atSamsung, by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the country.

There is a long history of top chaebol figures being charged with bribery, embezzlement, tax evasion, or other offences.

But many of those convicted have subsequently had their sentences cut or suspendedonappeal, with some receiving presidential pardons in recognition of their "contribution to the national economy".

South Korea traditionally issues pardons around this time of the year as it celebrates Independence DayonAugust 15, and the justice ministry said this year 810 people had been approved forreleaseonparole.

Justice Minister Park Beom-kye said Lee was "among thosegrantedparolein consideration of the national economic situation due to the prolonged coronavirus pandemic".

The decision was "basedonvarious factors including public sentiment and his attitude in prison", he told reporters.

Local reports said he was a "model prisoner" and this month a rule change came into effect cutting the proportion of the sentences prisoners must serve to be eligible forparole.

Lee, 52, just comes into compliance with the new requirement and will be releasedonFriday.

He was firstjailedfor five years in 2017, after Park's ouster, then walked free the following year when an appeals court dismissed most of his bribery convictions and gave him a suspended sentence.

But the Supreme Court later ordered Lee to face a retrial, which convicted andjailedhim again.

Even so, Monday'sparoleannouncement will not be the end of his legal travails: he is currentlyontrialonseparate accusations of manipulating a takeover to smooth his succession at the top of theSamsunggroup -- the same issueonwhich he was said to have sought help from Park.

Conglomerate delegation

Monday's announcement comes after five major South Korean business groups in April appealed to the presidential Blue House for a pardon for Leeonnational economic grounds.

In June, leaders of the country's top four conglomerates -- SK Group, Hyundai Motor Group, LG Group andSamsung-- also met with President Moon Jae-in to press him to pardon Lee.

Polls also show an increasing number of South Koreans supporting the idea of granting himparole, with more than 66 percent of respondents in favour in a recent Realmeter survey.

The turnover of the overallSamsunggroup is equivalent to a fifth of the national gross domestic product and it is crucial to South Korea's economic health.

Analysts have warned the prolonged absence of its de facto leader could hamper its decision-makingonfuture large-scale investments of the kind that have been instrumental to the rise of its flagship subsidiarySamsungElectronics to become one of the world's top smartphone and computer chip makers.

Last month,SamsungElectronics recorded a more than 70 percent jump in second-quarter net profits.