Samsung heir Lee Jae-yong to step down from board before bribery trial

Lee will not extend his term but will continue running the company with the title of vice-chairman

He is putting some distance between himself and South Korea’s largest conglomerate ahead of a re-trial over bribery charges that could land him back in jail

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Lee Jae-yong will continue to run Samsung Electronics with the title of vice-chairman. Photo: EPA-EFE

Published: 5:23pm, 8 Oct 2019Updated: 11:32am, 9 Oct 2019

The de facto leader of Samsung Electronics, Lee Jae-yong, plans to give up his board seat after his directorship expires in late October as he prepares for another trial over alleged bribery, a person familiar with the matter said.

The billionaire heir will not extend his three-year term on the board of the tech behemoth when it ends October 26, but will remain at the helm of the world’s largest chip and smartphone maker, the person said, asking not to be named because of the sensitivity of the issue.

Lee will instead continue to run Samsung Electronics with the title of vice-chairman, though its board will stay central to overall management, the person added.

The 51-year-old is putting some distance between himself and South Korea’s largest conglomerate ahead of a re-trial over bribery charges that could land him back in jail.

He faces additional allegations in a landmark case that inflamed popular anger over the chaebol that control the country’s economy and helped bring down former president Park Geun-hye.

Lee may be pre-empting a backlash over his re-seeking a board position – which requires shareholder approval – while contesting a months-long legal case.