이 기사는 2021년 08월 11일 08시02분 thebell에 표출된 기사입니다

South Korea’s Samsung Group is unlikely to go through any significant changes in its management structure for the time being despite its vice chairman Lee Jae-yong being released on parole later this week as employment restriction could prevent him from returning to work.

Lee, who had been serving a two-and-a-half-year sentence for bribing South Korea’s ex-president, is among other prisoners granted parole at a Monday review meeting, according to the country’s justice ministry. He will be released on Friday.

Lee’s parole is expected to help alleviate concerns about the absence of leadership in the South Korea’s biggest conglomerate. However, it is likely that there will be no significant changes in Samsung’s management structure in the near future as Lee may not be able to return to work any time soon.

Lee is subject to a five-year employment ban imposed on those who commit economic crimes under South Korean law. Lifting the employment restriction requires approval from the country’s justice ministry. Without this approval, Lee may have to step down as vice chairman of the conglomerate.

Samsung’s affiliates have operated in a decentralized manner since 2017 as Lee faced legal charges and the conglomerate’s corporate strategy department, Future Strategy Office, was disbanded. That year, Samsung Electronics, Samsung Life Insurance and Samsung C&T each launched task forces whose responsibility is to balance interests of the group's electronics, financial and construction affiliates respectively.

During Lee’s absence, Samsung Electronics, the conglomerate’s crown jewel, has been led by heads of its three divisions – vice chairman Kim Ki-nam of device solutions, president Kim Hyun-suk of consumer electronics and president Koh Dong-jin of IT and mobile communications – alongside finance head Choi Yoon-ho.

This temporary system has worked well to maintain the status quo. But with the absence of a key decision maker, the company has been slow to explore future growth opportunities and make bold investments and acquisitions.

Lee does not currently serve as a registered director of Samsung Electronics after his term as a director ended in October 2019. Some argue that given his status as a non-registered executive and the fact that he does not receive compensation from Samsung Electronics, Lee is not effectively employed by the company. However, it is unclear whether the justice ministry will agree with this view.

“In the worst case, Lee may have to step down as vice chairman and participate in the conglomerate’s decision-making process in an indirect way as the largest shareholder,” said an industry insider. “But this may draw criticism that he is trying to avoid responsibility for his decisions.”

Lee had been operating as Samsung’s de facto leader since his late father Lee Kun-hee was incapacitated in 2014. There were talks about his potential appointment as the conglomerate’s chairman after his father died in October 2020.

Other South Korea’s major family-controlled conglomerates, or chaebols, such as Hyundai Motor Group and LG Group, completed leadership succession to the third generation of their founders' families.

However, Lee is expected to remain cautious about taking over as chairman. He said in a trial in December 2017 that he thinks there will be no longer the position of the group’s chairman within Samsung in the future, indicating his different management style from his father’s. (Reporting by Choong-hee Won)