Samsung Government Chairman Jay Y Lee, second from left, was thought-about to be held again in taking a extra energetic function within the firm from the trial. Picture: Samsung
Samsung Electronics Government Chairman Lee Jae-yong, also called JY Lee, was acquitted of inventory manipulation and accounting fraud by a South Korean courtroom on Monday over a controversial merger of two firm associates again in 2015.
The Seoul Central District Court docket dominated that prosecutors did not show that the merger of two of Samsung’s associates, Samsung C&T and Cheil Industries, again in 2015, was illegal.
Prosecutors had claimed that the merger brought about injury to shareholders and was completed primarily to extend Lee’s management over the conglomerate, whereas the chairman’s legal professionals argued there was no fraud concerned and the merger was completed to extend the worth of each corporations and a part of regular enterprise exercise.
In a press release, Lee’s legal professionals stated the ruling “clearly confirms” that the merger was lawfully completed and thanked the courtroom.
The authorized victory is critical for the Samsung Government Chairman __ the highest boss of your complete Samsung conglomerate __ who was thought-about to be held again from taking a extra energetic function in administration as a result of case. Samsung recorded one in every of its worst earnings performances in over a decade final yr as a result of world recession that dented demand for shopper electronics and laptop chips.
Nonetheless, the ruling is from the district courtroom and prosecutors can nonetheless attraction the choice and take the case to the appeals courtroom, then later as much as the Supreme Court docket.
Lee was already jailed again in for graft in 2017 and subsequently freed in 2021 from a legally separate case over a bribery scandal involving former South Korean President Park Geun-hye, who herself was jailed with an aide for taking bribes from massive companies.
Different 13 executives who had been additionally indicted together with the Samsung Government Chairman within the inventory manipulation case had been acquitted. Among the many executives was former Samsung Electronics CEO Choi Gee-sung, who is taken into account to be one of many predominant figures behind Samsung’s success in smartphones and chips in the present day.
Lee grew to become the de issue chief of Samsung in 2014 when his father Lee Kun-hee suffered a coronary heart assault and was hospitalized. After the senior Lee handed away in 2020, the present Samsung boss was named formally because the Government Chairman of Samsung in 2022. JY Lee is the grandson of Samsung founder Lee Byung-chull, who based the corporate in 1938.
