Quan Xiaoxing
["Samsung Group is set to disintegrate the future strategy room. This measure will help each subsidiary to make independent decisions based on its own situation. We will also follow a path that Samsung Group has never traveled in its history."]
[Afterwards, on August 25, South Korea’s Seoul Central District Court issued a verdict on the case of Li Zaijun’s bribery case against Samsung’s chieftain, and the court sentenced Li to be sentenced to five years’ imprisonment. ]
Facing the judge, Li could not help but shed tears.
When South Korean prosecutors proposed a sentence of imprisonment of 12 years, Li, the head of Samsung, who has always been calm, choked and said, "If I can't solve the immediate mistrust and misunderstanding, then I don't have any significance as a Samsung chief. ".
Afterwards, on August 25, South Korea’s Seoul Central District Court made a first-instance judgment against Samsung’s Li Yan’s bribery case. The court sentenced Li Zaiyu to five years imprisonment, except that Li Zai’e’s meeting with Park Geun-hye was not pursued. After assistance and adjustments on the scale of bribery, the prosecution’s allegations have basically been identified: bribery, corruption, transfer of assets overseas, concealment of proceeds of crime, and perjury to the Congress.
At the same time, the media’s concern for the Samsung Group is also constantly rising. As a large technology company in South Korea and even the world, Samsung will be the focus of attention in the “after Lee Jae-sun era†and has become the focus of attention for many people.
The "3·5 rule" of South Korea's chaebol
Kim Jong-mo, a South Korean legal practitioner, told the reporter that the bribery was the most important part of Lee's five counts. The determination of bribery directly determines the establishment of other charges. " After all, whether it is transferring assets or concealing income, it needs to be supported by bribery facts."
“In this case, the most direct point of controversy lies in whether Li Zaiyu provided bribes for the purpose of making profits, and whether the bribes to Cui Shunshi were in the hands of Park Geun-hye. In the judgment documents of the first instance, there were 13 pages devoted to this part. The court, on the other hand, gave all the accusations of the two prosecutors approval, and stated in the judgment document that: From the previous testimony and evidence, there is no doubt that there is a firm 'economic community' between Park Yong-hui and Choi Shun-shi. "Jin Chengmo said.
Jin Chengmo also told reporters that for the ongoing reform of the equity structure within the Samsung Group, the first instance determined that its purpose was to “help Li Zaiyi gain control over the group headed by Samsung Electronics and its subsidiaries.â€
Therefore, in Jin Jinmo's view, this judgment basically confirmed the fact that Li Zaijun was bribed, and determined the nature of the case of “immoral collusion between political power and economic power.†It can be said that, for prosecutors, There are some details of regret, but overall, the first-instance trial is the prosecution's decision to win."
However, according to Zhu Zhenheng, another Korean financial activist who has long been engaged in chaebol research, "the essence of this trial still reflects the collusion between South Korea's chaebol and judicial power."
When Zhu Zhenheng served as a representative of a securities company in South Korea, he had previously opposed the merger between Samsung and First Knitwear, and the merger was dubbed as "the most important part of Li Zaisheng's inheritance of the Samsung Empire."
Zhu Zhenheng believes that the merger case “takes a private interest by means of underestimating the value of Samsung’s property and deliberately undermining the interests of other shareholdersâ€.
"In the process of Li Zaiyi’s inheritance of power, in the case of the merger of Samsung Products and First Knitwear, the affirmative vote of the Korean National Pension Fund (Reporter's Note: National Pension Fund) finally played a decisive role. However, for the prosecutor's assertion that Li Zaijun used bribery in exchange for the government’s support for inheritance, the court of first instance gave the judgment that “Although Li Zaifu bribed the forces of Park Geun-hye and Cui Shunshi, the purpose could not be considered as self-interestâ€. This also greatly affected the verdict, Zhu Zhenheng pointed out.
Zhu Zhenheng believes that: "As we all know that the actual head of the Samsung Group is the Li Jianxi family, it can be said that the court's decision is contrary to common sense and uniquely 'creative'. On the one hand, the court referred to 'unjust collusion' in the judgment document. This judgment also shows on the side the improper collusion between economic power and judicial power."
In addition, Zhu Zhenheng also mentioned the “3·5 rule†widely spread in Korean workshops to show that Korean people are dissatisfied with the repeated avoidance of penalties by chaebols: that is, under normal circumstances, bribery cases involving large chaebols, the first-instance general judgement will have a After five years of imprisonment, the second and third trials reduced the term of imprisonment to less than three years on various grounds, and ended in “probationâ€.
It is worth noting that after the verdict was released, the Samsung party and the prosecutor almost simultaneously expressed their dissatisfaction with the verdict and filed appeals.
After the trial ended, the Samsung lawyer sent a message to reporters including the First Financial Journalist that "We firmly believe that all the defendants are not guilty and therefore cannot accept the court's decision," and that they will appeal immediately. Fully prepared for the trial of the second instance; and the prosecutors also passed official documents, stating that the court’s judgment was too light and “not in compliance with the law and practice†and appealed to the higher court.
According to a report by the First Financial Reporter, the longest sentenced sedan in South Korea's large-scale financial assets was former president of the Daewoo Group, Kim Yu-chung. The prosecution sentenced to 15 years’ imprisonment, and the final court sentenced him to 10 years of imprisonment, which also provided important benefits for the Daewoo Group’s decline. The reason; while Samsung’s former chief Lee Kun-hee was once sentenced to 7 years’ imprisonment by the prosecution, and was finally sentenced to 3 years’ imprisonment and 5 years’ deferral.
However, at the end of 2009, when the then President, Lee Myung-bak, announced that he was based on "national interests," he said that he served as a member of the International Olympic Committee and he could help Pyeongchang to host the Winter Olympics. This is also the first time in Korea's history for a single person. pardon.
Double-sided Li Zaiyu
“There is such a rumor within Samsung: Li Zaiyu’s car backroom has many Samsung Galaxy flagship smart phones. When faced with some important people, he will use this to promote his own mobile phone.†A well-informed person. The South Korean person told the First Financial reporter. "But this was just an rumor until that happened."
It was in a family activity. When a reporter wanted to interview Li Zaiyu, Li Zai found some clues and jokingly said, "If you take a Samsung mobile phone, I will be happy to accept the interview." At this time the reporter is holding the LG smart machine. Not waiting for the reporter to answer, Li Zaiyu went to the front of the private car and took out a Samsung flagship cell phone from the suitcase and gave it to the reporter. Since then, the reputation of the "Galaxy ambassador" has spread.
In fact, outside the “Galaxy ambassadorâ€, Li Zaiyu has a more profound impression left to the Korean public, namely “born with a gold spoonâ€.
Li Zaisheng was born in 1968. His father is the richest man in South Korea and the head of the Samsung Group is Li Jianxi. The mother is the daughter of South Korea’s big media company “Central Daily†and the daughter of Hong Luoxi. As the only child in the family, Li Zai’e is also early. After being trained as a successor and graduating from the Seoul National University, a prestigious Korean university, Lee was sent to Japan and the United States to study abroad.
In 2001, Li Zaiyu returned to Samsung formally and began to hold some important posts in the group. In the following ten years, he rarely exposed the media and transferred to multiple positions. Some people commented that unlike Li Jianxi’s “Emperor Fanâ€, Li Zai’s personality was moderate, and he absorbed knowledge from the West, and he also had some “book angerâ€; while Li Zaijun performed in college and after work. Out of the "appropriate" has also become one of Lee's most important labels.
An accident led Li Zaiyu to reach the public in advance. In May 2014, the 72-year-old Li Jianxi was hospitalized because of a sudden myocardial infarction and has been in a coma since.
“Under the chaebol system of South Korea, the most prominent feature is the existence of a strong spiritual leader; and just as the international group (one of the top 10 chaebols in Korea in the 1970s), the collapse of the spiritual leader, is likely to become the beginning of a group. The initial point of the collapse; therefore, the transfer of power from the group is also the most sensitive part of the entire chaebol operation process,†explained Li Guoxian, a professor at the Korea University’s School of Economics and Economics who has long studied the Korean economic system.
Li Zaiyu has always been a "low-key man," bringing with it a lot of reputation: For example, some media have photographed Li Zaiyu in order to participate in a friend's wedding. He took the door alone without even attending to his wife, and even witnessed his flight in economy class alone. And Li Zaiyu’s university classmates were also interviewed by the media and testified: “We used to cook instant noodles with Li Zaiyu at home. At that time, besides feeling that Li Zai’e was supposed to be a good family background, there was no other difference; It’s still a long time since I was a Samsung successor.â€
However, over time, Samsung, under Lee's control, is faced with multiple crises: On the one hand, since 2014, Samsung has faced multiple quarters of lower profit margins and fierce chase from competitors; On the other hand, taking the Galaxy Note7 explosion as an opportunity, Samsung Electronics is also facing a crisis of confidence.
The “exposure†of Li Zai’e in front of the public under pressure and desire has gradually increased, and the negative news and evaluation on Li Zai’e has gradually increased. Previously, South Korean media had exposed Li Zaiyu’s son as a “social caring object†through the single-parent family's children in January this year. As a result of the fact that the controversy arose, he finally chose to withdraw from school. The apology book was published the next day.
And its "inheritance rights incident" caused even greater disturbances. According to Samsung’s former legal team leader Kim Jong-cheol, who had previously stated in “The Inside Story of Samsung: Revealing Samsung’s First Truthâ€, Samsung started the “Operational Right Inheritance Plan†in 1994 and assisted Lee Jae-Hyun in taking over the Samsung Group. According to local laws, South Korea will charge a high inheritance tax on heirs to high-value property. Under the well-designed plan, Li Zaiyu can avoid delivering up to 50% of the inheritance tax, and pay the least tax to control the entire Samsung Empire.
Outsiders analyzed that the sudden collapse of his father caused Li Zaiyu to choose between hastily and hurriedly to complete the succession of the "genuine plan". Eventually he not only failed to distinguish himself from the evils of the chaebol, but instead chose to participate in the wrong between the "chaebol and political power". During the transaction.
Who is running Samsung
For Mr. Jin, an ordinary employee who works in a subsidiary of the Samsung Group, an e-mail at the end of February this year made him feel that he had changed.
On this day, Samsung officially announced to employees through company e-mail: In order to fulfill the commitments made at the congressional hearing, it is determined that the future strategic room within the Samsung Group will be set to be dissolved in the near future.
“Although it was previously heard from television, Li Zaiyu and Samsung Group were allegedly involved in the scandal of 'swallowing the government'; however, only after seeing this email did they realize that there was a big change; not just Talk about it," recalled Mr. Kim.
For many Samsung employees, the dissolution of the future strategic room means that executives who are originally scheduled to be at 6:30 a.m., and the decision-making methods within the Samsung Group and personnel movements may change.
According to public information, Samsung Group's future strategy room was originally a "secretary room" established by Li Bingjun, founder of Samsung Group in 1959. At first, the department had only 20 people and mainly assisted the president in handling daily affairs.
Professor Li Guoxian told CBN reporter: "In fact, one of the most characteristic features of the first generation of chaebols in South Korea is that the founder's family members or heads of the company have absolute decision-making power over the company and rely on the 'inspiration' of the chief. To run a business; and Samsung, as a diversified company, has its subsidiaries spread around the world, so Li Bingjun believes that a strong staff organization is needed as an internal coordinator to collect information and make plans and adjustments; in this context, The function of the secretary room began to be strengthened."
Under this influence, Li Bingyi began to hand over all his daily affairs to his subordinates and he only made strategic decisions. This concept was accepted by Li Jianxi and further developed; as of the 1980s, the Samsung Secretaries Office had been called “Operationsâ€. "One of the central institutions of the Korean economy" has become one of the important ways that Li Jianxi promotes the "new business strategy."
Since then, the Secretariat has undergone several organizational changes. In 2010, it was renamed the “Future Strategic Office.†Although this organization is not part of any of the subsidiaries of the Samsung Group, this is simply referred to by the Samsung staff as "Rights of the room, subsidiary companies. The financial system continues to this day. Samsung’s subsidiaries’ design plans, allocation of resources, and adjustments of business operations are all undertaken by the “future strategy room†and form a top-down, up-and-down efficiency system.
“It can be said that Samsung’s future strategy room is the 'brain' of the Samsung Group and even each of the Samsung’s people, and has made a lot of contribution for the head’s ability to concentrate on making 'big decisions',†said Li Guoxian.
The dissolution of the future strategic room means that Samsung is accelerating its “establishment†and devolving power to various subsidiaries to achieve the purpose of smooth operation.
Previously, an executive of the Samsung Group, who asked not to be named, once told the First Financial reporter: “The Samsung Group is behind the disintegration of the future strategic room, and Li Zaiyu himself believes that the promised things should be honored as soon as possible. Great affiliation. I believe this measure will help all subsidiaries to make independent decisions based on their own circumstances, and we will also follow a path that Samsung Group has never traveled in its history.â€
Mr. Jin, who works at Samsung, has similar feelings: “Although it is impossible to directly contact Li Zaiyu at my level, it is indeed possible to see that many decisions of the Samsung Group have gradually shifted from the group to the subsidiaries. The proportion of decision-making based on their own situation has increased significantly."
Korean political analyst Zhao Shangxi believes that Samsung will gradually form a system in which daily operations will be carried out by major subsidiaries and business leaders, and Li Zaijun will coordinate and make decisions on large projects in prison.
“In fact, even after Li was arrested in February of this year, major incidents such as additional investment were still reported to Li Zaiyu himself and made a decision. Among the major chaebols in South Korea, this kind of 'prison Business is not uncommon, Zhao Shangxi said.
Zhao Shangxi told CBN reporter: “Especially when Samsung announces the closure of the future strategic room, if Samsung is still setting up an independent decision-making body like other chaebols, it is very likely to incur criticism of the “Resurrection of the Future Strategy Room†by public opinion. Obviously, it is unfavorable for the upcoming trial; therefore, Samsung will choose to strengthen Li Ziyi's 'operating in prison' while attempting to decentralize the major subsidiaries according to their own circumstances and expand their autonomy in operations."
The aforementioned Samsung executive admits: “As a result of the arrest of Li Zaiyu, at this stage, although the company is still operating normally and the work is being carried out in an orderly manner, strategic decisions concerning personnel recruitment, mergers and acquisitions, etc. cannot be denied. It must be influenced.†And said that “especially in recent years, Apple, Google and other large giants have frequently moved and expanded their business scope to expand the ecosystem; even if Li Zai’e makes decisions in prison, there is no reorganization in the decision-making system. Next, the limitations are still quite large compared to the normal situation."
Trial "Old Fortune Valve"
"I think that Li Zaiyu's negative impact on Samsung is even lower than Note7 (its negative impact)." Home appliance industry observer Liu Buchen told the First Financial reporter. He believes that Samsung is a family-owned company based on modern enterprise management mechanisms. The operation of enterprises depends more on mechanisms than on personal influence.
Outside the company level, Professor Li Guoxian is worried about the negative impact of Samsung Li’s case on the macro economy from a long-term perspective. “Considering that South Korean SMEs mainly rely on the reality of joining the large-scale chaebol industry chain, Samsung has already become a landmark company in South Korea. Samsung's crisis is not just a corporate issue. It should also consider the invisible and indirect damages to the Korean economy, such as employment and national credit, said Professor Li Guoxian.
As of June 2016, Samsung Group has a total of 59 subsidiaries in South Korea, of which 15 companies have been listed; and one of the Samsung Electronics, it is the total market value of listed companies in Korea topped the list.
According to the statistical data of the Seoul Stock Exchange of South Korea, the total market value of all listed companies in the Top 10 Group in Korea is 714.3320 trillion won, of which the Samsung Group reaches 352.1560 trillion won, far exceeding the second Hyundai Motor Group’s 104.5941 trillion. The Korean won occupies half of the country.
In addition to the KOSPI index, the KOSPI200 stock index index index, which was established by South Korea's top 200 companies and originally set up to share risks, has directly evolved to follow the share price of Samsung Electronics.
According to industry analysts, Samsung Electronics’ family accounted for 220 trillion won, or nearly 20%, of the KOSPI200 index's total market value of 1,100 trillion won. Under this circumstance, the industry’s people analyzed it without fear: With foreign investors and institutional investors with nearly 40% shares of Samsung Electronics taking advantage of their information and investment skills, they will have a dominant advantage by using the method of trading futures options originally used for "risk sharing" of futures trading. .
“Although these institutions and foreign investors cannot directly manipulate the KOSPI200 futures index, they can fully achieve their expected goals by manipulating Samsung Electronics’ stock price; this has also added a factor to the instability of the Korean stock market. In the process, it is likely that the final defeat will be retail investors.†The industry figures added.
Zhu Zhenheng said: "In fact, the significance of this trial is that it should not only be a trial against Li Zaijun or the Samsung Group, but should also be a trial for the old chaebol system and be the starting point of 'debriefing'. â€
“We should make it clear that the chaebol family only holds a minority stake, but through a complex ownership structure and the 'empty' legal environment, it has achieved pervasive control of the company and hereditary occupation of corporate leadership positions. This model is a serious violation. Democracy and business spirit,†said Zhu Zhenheng.
Zhu Zhenheng believes that “after Samsung’s whereabouts during the Li’s time, it should not be judged by Samsung, but should be judged by the marketâ€, and citing Samsung’s stock price on the Seoul Stock Exchange as an example not because of Li’s previous The company was arrested and suffered a major decline. On the contrary, the stock price of Samsung Electronics maintained a stable upward trend. The stock price per share exceeded KRW2.3 million and reached a record high.
He cited the “Washington Post†critique of Samsung: “Samsung’s influence is almost comparable to the governmentâ€. He said, "The most important promise of Wen in the government of the Bengbu is to 'clear up' and reform the country; and if it is impossible to reform the chaebol and cut off the link between the chaebol and political power that have been going on for decades, South Korea's Reform will also be impossible."
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