Samsung Chips In To Hike Yoon’s Standing

The political honeymoon of South Korean president Yoon Suk-yeol appeared to be over but then came a disgraced Samsung chief to rescue his dwindling popularity.

Ratings of South Korean presidents typically stand above 80 percent during their early stint in office, just because of high expectations from the new dispensation. But in the case of the current incumbent, the privilege proved elusive.

Barely two months into office, Yoon's support base has dwindled as inexperience, gaffes and personal issues marred the approval ratings of the 61-year-old former prosecutor.

His rating plunged to 32 percent from a high of 53 percent five weeks earlier, according to a poll by Gallup Korea in the second week of this month. Disapproval reached 53 percent, up by 19 percent in the same five-week period.

As if the troubles he himself created were not enough, Yoon's wife, Kim Kun-hee, consistently invited the bad press for anything from alleged financial scandals to her belief in fortunetelling.

Last month, Kim drew further backlash by taking a friend, who was not a government official, while visiting a former first lady in a remote village in the country.

Yoon soon washed his hands and pleaded ignorance about official and private trips for his wife. The political novice quipped to save his skin: "This is my first time as president."

But again in June for the NATO summit in Spain, Yoon and Kim took along the wife of a close aide, which drew flak from the public.

As a poll plank, Yoon vowed to fight graft, and create a level-playing field to address unemployment and runaway housing prices, which went well with disillusioned younger generations. Yoon also campaigned for cementing the ties with the U.S. and Japan over China.

Yoon, who won the presidential race with the smallest-ever margin of 0.73 percent in May, was initially lauded for delivering on his promises.

But soon the decline started as political appointments sparked allegations of nepotism as his friends and associates occupied key government posts. More than 15 current or former prosecutors found a place in the government payroll.

A low rating complicates Yoon's decision to go ahead with the political agenda in a parliament where the opposition Democratic Party enjoys a majority over his conservative People Power Party.

The ruling People Power Party has proved ineffective in supporting him at the hour of need as it is embroiled in a sexual scandal around a young leader, Lee Jun-seok, who is already facing a six-month suspension from the party.

In the midst of controversies, he failed to articulate a policy direction of the government. His tendency to blame the previous government made him look arrogant as South Korea was facing a swathe of economic and geopolitical issues.

Yoon had nowhere to look for succor. But the pragmatic politician in him found in Samsung, the largest Korean chaebol, which is also the largest contributor to South Korea's economy, a savior.

Its chief Lee Jae-yong was awarded two and a half years in prison in January 2021 on charges of bribery, embezzlement and concealment of criminal proceeds. Though on parole in August last year, he had already served 18 months in jail.

Despite being out on parole, the law prevented Lee from leading management decisions. However, a presidential pardon will help him to return to his position as the conglomerate's top post.

Business leaders have been consistently urging the government to pardon Lee to help Samsung play a leading role as the global chip market which is facing severe shortages. Samsung Electronics is the world's biggest memory chip maker.

Given his absolute role in Samsung's investment portfolio, a pardon is crucial to help the chaebol to make major decisions in its expansion plans.

According to conservative accounts, Samsung accounts for 20 percent of Korea's exports and stock exchange capitalization, and nearly 17 percent of gross domestic product.

In the absence of a pardon, Lee can't legally return to management as Samsung vice-chairman until 2027. The pardon may come on the way of Lee on August 15, which is South Korea's independence day.

Despite scandals, Samsung is strongly growing but its leadership has lost its luster. The younger members of the Lee family are not keen on sticking to the family business as their calling. So, Lee is, therefore, likely to be the last in his line to be at the helm of the largest Korean chaebol.

Yoon is pleasing the patriarch but will it please the nation?