Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Why Solly Malatsi was right to bury the Post Office monopoly

      Why Solly Malatsi was right to bury the Post Office monopoly

      4 January 2026
      Television turns 50 in South Africa

      Television turns 50 in South Africa – and the future looks nothing like the past

      4 January 2026
      DStv dodges channel blackout in last-minute deal with Warner Bros

      DStv dodges channel blackout in last-minute deal with Warner Bros

      31 December 2025
      The rand just pulled off its biggest comeback in 16 years

      The rand just pulled off its biggest comeback in 16 years

      31 December 2025
      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      23 December 2025
    • World
      Starlink plans to lower satellite orbit to enhance safety

      Starlink plans to lower satellite orbit to enhance safety

      4 January 2026
      Lou Gerstner, the man who saved IBM, dies at 83

      Lou Gerstner, the man who saved IBM, dies at 83

      29 December 2025
      Starlink satellite anomaly creates debris in rare orbital mishap

      Starlink satellite anomaly creates debris in rare orbital mishap

      19 December 2025
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
    • In-depth
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      DStv dodges channel blackout in last-minute deal with Warner Bros

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Why Samsung’s Lee needs to do his prison time

    Why Samsung’s Lee needs to do his prison time

    By Agency Staff26 August 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Jay Y Lee

    History was made in a Seoul court on Friday when Jay Y Lee, scion of the family that founded the giant Samsung conglomerate, was convicted on bribery and embezzlement charges and sentenced to five years in prison.

    In theory, the verdict should send a stark signal to the country’s politicians and business leaders that the corrupt shenanigans that have so plagued this otherwise outstanding economy must end. But that message will hit home only if one critical thing happens: Lee does his time, all of it.

    Many conservative Koreans will argue that Lee is being made a scapegoat. After all, the Samsung executive found himself caught up in a scandal involving no less a figure than former President Park Geun-hye, who was impeached over her alleged role in the corruption scheme. The managers of South Korea’s big business groups, called chaebol, can ill afford to stand on principle when presidential favour is at stake.

    Too many excuses for bad business behaviour have been made in the past, with the result that Korean corporate titans found guilty of assorted crimes

    That’s beside the point, however. Too many excuses for bad business behaviour have been made in the past, with the result that Korean corporate titans found guilty of assorted crimes — including Lee’s illustrious father — have routinely been let off the hook. Invariably, they’ve received suspended sentences or presidential pardons, and have slipped back into their corner offices as if nothing ever happened. The signal has been all too clear: executives can get into trouble for bribing politicians or stealing funds, but not that much. Such misguided leniency has encouraged scandal after scandal.

    With Lee’s conviction, Korea has an opportunity to break this embarrassing cycle. The Samsung scion will certainly appeal his sentence, one of the harshest ever handed down to a top chaebol executive. Only by locking Lee up, though, and keeping him there for his full sentence, will the government and courts send a convincing message that corporate malfeasance will no longer be tolerated.

    Reforming the chaebol

    This is particularly important right now, for two reasons. Newly installed President Moon Jae-in campaigned as a crusader for reforming the chaebol. But his political party doesn’t control the national legislature, where any bold proposals will likely face stiff opposition from conservatives. Moon’s choice to head the country’s Fair Trade Commission, known as a strident chaebol critic, has already started managing expectations, stating that the new administration doesn’t intend to break up the chaebol system and praising the conglomerates for starting to unwind some of the complicated cross-shareholdings through which families have traditionally maintained control over their companies.

    Much more needs to be done to clean up those shareholding structures, strengthen corporate governance and break the stranglehold that the chaebol maintain over certain sectors. But until Moon has the political capital to push through more extensive reforms, the best weapon he has is the threat to carry through the laws already on the books. Only if rich and powerful chaebol chiefs believe they’ll pay a price for corporate skulduggery will they begin to clean up their acts.

    Equally importantly, ordinary Koreans need to see someone like Lee serving time. For too long, they’ve been told that these chaebol family-managers are critical to the nation’s continued economic prosperity. Even Park, who came into office similarly promising to revamp the chaebol system, eventually succumbed to this specious argument and pardoned at least one prominent tycoon.

    Whenever he emerges from his cell, Samsung’s shareholders and managers shouldn’t welcome him back into the corporate fold

    Yet one glance at the recent performance of Samsung Electronics proves the company will be just fine — perhaps even better off — without Lee. Since Lee’s arrest in mid-February, the company’s stock price has surged 24%. Last quarter, Samsung Electronics impressively posted record profits. The stellar performance provides evidence that in modern South Korea, the talented and experienced professional executives at its biggest corporations no longer require family patriarchs at the helm to achieve growth and profits.

    In order to make this all stick, even jailing Lee may not be enough. Whenever he emerges from his cell, Samsung’s shareholders and managers shouldn’t welcome him back into the corporate fold. That would strengthen the message that criminal behaviour will no longer be tolerated in Korea’s business community.

    For his part, Moon can break with his predecessors and avoid any pressure between now and then to pardon Lee. The Samsung scion may be a sacrificial lamb, but it’s a sacrifice that must be made.  — Written by Michael Schuman, (c) 2017 Bloomberg LP

    • Michael Schuman is a journalist based in Beijing and author of Confucius: And the World He Created


    Jay Y Lee Michael Shuman Samsung Samsung Electronics top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleKoos Bekker lashes critics at Naspers AGM
    Next Article TalkCentral: Ep 188 – ‘It’s LIT!’

    Related Posts

    The best seat in the house? It's behind your Samsung Galaxy smartphone

    The best seat in the house? It’s behind your Samsung Galaxy smartphone

    9 December 2025
    Samsung Galaxy Tab A11: a smarter, sharper companion for work and play

    Samsung Galaxy Tab A11: a smarter, sharper companion for work and play

    8 December 2025
    Beat the summer heat with Samsung's WindFree air conditioners

    Beat the summer heat with Samsung’s WindFree air conditioners

    5 December 2025
    Company News
    Why banks and insurers need a single decisioning brain as pressures collide - SAS

    Why banks and insurers need a single decisioning brain as pressures collide

    29 December 2025
    First Technology Western Cape delivers the tools - and intelligence - behind modern business - Dell Technologies

    First Technology Western Cape delivers the tools – and intelligence – behind modern business

    29 December 2025
    How First Technology Western Cape supports green IT initiatives - Dell Technologies

    How First Technology Western Cape supports green IT initiatives

    29 December 2025
    Opinion
    ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

    ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

    14 December 2025
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Why Solly Malatsi was right to bury the Post Office monopoly

    Why Solly Malatsi was right to bury the Post Office monopoly

    4 January 2026
    Television turns 50 in South Africa

    Television turns 50 in South Africa – and the future looks nothing like the past

    4 January 2026
    Starlink plans to lower satellite orbit to enhance safety

    Starlink plans to lower satellite orbit to enhance safety

    4 January 2026
    DStv dodges channel blackout in last-minute deal with Warner Bros

    DStv dodges channel blackout in last-minute deal with Warner Bros

    31 December 2025
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}