A South Korean court on Monday upheld the acquittal of Samsung Electronics Executive Chairman Jay Y. Lee in a high-profile case involving allegations of accounting fraud and stock manipulation related to the controversial 2015 merger of Samsung affiliates Cheil Industries and Samsung C&T.
The Seoul High Court dismissed the prosecution’s appeal, reaffirming a lower court’s ruling that found Lee not guilty of the 19 charges under the Financial Investment Services and Capital Markets Act. Prosecutors had argued that the merger was orchestrated to solidify Lee’s control over South Korea’s largest electronics conglomerate, at the expense of Samsung C&T shareholders.
The ruling comes a year after a lower court exonerated Lee and nearly four and a half years after his indictment in September 2020. At the time, Lee, then vice chairman of Samsung Electronics, was accused alongside other former Samsung executives of pushing through the merger to gain greater influence over the company’s management.
On Monday, the Seoul appeals court also cleared all former Samsung executives implicated in the case.
During the November 2023 hearing, Lee denied any wrongdoing, asserting that the merger adhered to standard corporate procedures. Last year, prosecutors sought a five-year prison sentence and a 500 million KRW fine (approximately $375,000) for Lee at an appeals court hearing.
This decision marks the culmination of nearly a decade of legal battles for Lee, stemming from a merger that brought corporate governance practices at Samsung under scrutiny.
“It is difficult to say the merger was carried out without the two companies’ consent, as it was decided under arrangement and cooperation of Samsung C&T, Cheil Industries, and Samsung’s Future Strategy Office,” the court stated, rejecting the prosecution’s claim that Samsung’s control tower office dictated the merger’s terms.
Prosecutors have indicated they will review the high court’s decision before determining whether to appeal to the Supreme Court, according to Yonhap News Agency.
