[Alpha Biz=(Chicago) Reporter Kim Jisun] Lee Jae-yong, 56, chairman of Samsung Electronics, was acquitted three years and five months after he was put on trial on charges of "illegal management succession."

Samsung's Future Strategy Office, which led the chairman's succession process, and all 13 officials from Samsung C&T, Samsung Biologics (Samba) and Samil Accounting Firm, who colluded in an unfair merger with Cheil Industries to strengthen their control within the group at the lowest cost, were found not guilty.

The Criminal Agreement Department 25-2 (Presiding Judge Park Jung-je, Ji Gwi-yeon and Park Jung-gil) at the Seoul Central District Court held a date for a sentence on the violation of the Financial Investment Services and Capital Markets Act (Capital Markets Act) of 14 people, including Chairman Lee, on the afternoon of the 5th and acquitted them of 23 charges presented by the prosecution, saying, "All of them have no criminal evidence."

It has been eight years and five months since the merger of Samsung C&T and Cheil Industries in 2015, and seven years since the incident broke out due to the so-called "manipulation of state affairs" scandal involving the Park Geun-hye and Choi Soon-sil gates.

"With the evidence submitted by the prosecutor alone, the merger between Samsung C&T and Cheil Industries is not solely aimed at strengthening the defendant Lee Jae-yong's management rights and the succession of Samsung Group," the court said. "Even if it is accompanied by the purpose of strengthening control, the merger of the case has a reasonable business purpose and cannot be considered unfair as a whole."

"Defendant Lee Jae-yong did not illegally and unfairly maximize the defendant's profits in the process of the merger," the court said. "The merger management board (board of directors) of Samsung C&T appears to have reviewed the worsening management situation and pushed for a merger (with Cheil Industries)." He added, "Stabilizing management rights has also benefited shareholders of Samsung C&T."

 

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