Samsung boss acquitted of accounting fraud and financial fraud
Samsung Chairman Jay Y. Lee can rejoice right now, as he was acquitted of accounting fraud and stock manipulation by a Seoul appeals court on Monday, February 3. Legal troubles have followed him for years.
He was previously jailed for bribing a former South Korean president.
Jay Y. Lee was found guilty of bribing former South Korean President Park Geun-hye and served a total of 18 months in prison between 2017 and 2021. He was released on parole in 2021 and received a pardon in 2022.
In 2024 he faced charges of accounting fraud and stock manipulation tied to a 2015 merger.
The charges, which Lee denied, involved accounting fraud and stock price manipulation related to an $8 billion merger of Samsung affiliates in 2015.
Prosecutors argued at the Seoul Central District Court that Lee and other former executives violated the Capital Markets Act to facilitate the 2015 merger, which strengthened Lee's control over Samsung Electronics. They alleged that the executives manipulated stock prices, harming minority investors to ease Lee's succession.
The trial lasted over three years. This case was his final legal challenge.
Now, the court upheld the earlier ruling dismissing charges related to the 2015 merger that prosecutors claimed was intended to secure his control over the company.
For nearly a decade, Lee has dealt with legal challenges, including those stemming from the merger that solidified his succession after his father suffered a heart attack in 2014.
Lee, who has denied any wrongdoing, did not respond to reporters as he left the court. It remains unclear whether prosecutors will appeal to the Supreme Court.
Lee's legal battles have raised concerns about his leadership as Samsung faces increasing competition and sluggish stock performance. His lawyer, Kim You-jin, expressed hope that with this ruling, Lee and others involved could now focus on their work.
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He was previously jailed for bribing a former South Korean president.
Jay Y. Lee was found guilty of bribing former South Korean President Park Geun-hye and served a total of 18 months in prison between 2017 and 2021. He was released on parole in 2021 and received a pardon in 2022.
The charges, which Lee denied, involved accounting fraud and stock price manipulation related to an $8 billion merger of Samsung affiliates in 2015.
Prosecutors argued at the Seoul Central District Court that Lee and other former executives violated the Capital Markets Act to facilitate the 2015 merger, which strengthened Lee's control over Samsung Electronics. They alleged that the executives manipulated stock prices, harming minority investors to ease Lee's succession.
Of course, Lee denied the claims, calling the merger standard management. In late November, South Korean prosecutors sought a five-year prison sentence for the Samsung Chairman. In 2024, a court acquitted him of fraud and stock manipulation, but prosecutors appealed.
The trial lasted over three years. This case was his final legal challenge.
Now, the court upheld the earlier ruling dismissing charges related to the 2015 merger that prosecutors claimed was intended to secure his control over the company.
For nearly a decade, Lee has dealt with legal challenges, including those stemming from the merger that solidified his succession after his father suffered a heart attack in 2014.
Lee, who has denied any wrongdoing, did not respond to reporters as he left the court. It remains unclear whether prosecutors will appeal to the Supreme Court.
Lee's legal battles have raised concerns about his leadership as Samsung faces increasing competition and sluggish stock performance. His lawyer, Kim You-jin, expressed hope that with this ruling, Lee and others involved could now focus on their work.
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