Why Samsung’s Billionaire Heir Is In and Out of Jail

Samsung Group scion Jay Y. Lee walked out of jail Friday, a free man once again. He had been granted parole after being sent to prison for a second time in January after a conviction on bribery charges. He apologized to the public for “causing worries” and said he’s aware of “concerns, criticisms, expectations.” Still, Lee faces the prospect of returning to jail if convicted in another, ongoing case. Both cases center on the means Lee used in trying to take control of the company founded by his grandfather, a saga that brought down a South Korean president and reignited public outrage over the cozy relationship between government and business. Lee’s imprisonment has created a vacuum atop the world’s largest producer of memory chips, smartphones and consumer appliances at a time when the Covid-19 pandemic and U.S.-China tensions are intensifying competition. His release comes just months ahead of South Korea’s presidential election.

Lee, 53, is the vice chairman of Samsung Electronics Co. and heir apparent to South Korea’s largest conglomerate. His father, Lee Kun-Hee, led the group for many years until he suffered a heart attack in 2014. The elder Lee died Oct. 25 after years in a coma, during which time his son became the de facto leader. Lee solidified his control after inheriting his father’s stakes in three Samsung affiliates and resolving the inheritance tax issue. (South Korea has one of the heaviest rates in the world.) The family’s wealth is estimated at about $30 billion, according to the Bloomberg Billionaires’ Index, and their tax bill has been estimated at about $10 billion.