 |
Samsung Electronics Chairman Lee Jae-yong (Photo = Yonhap news) |
[Alpha Biz= Kim Sangjin] The Seoul High Court is set to announce its ruling on Samsung Electronics Chairman Lee Jae-yong's appeal against charges of illegal merger and accounting fraud on February 3, 2025, at 2 PM. This will come one year after the first trial verdict in February 2024.
In the initial trial, the Seoul Central District Court ruled that Lee Jae-yong and other Samsung executives were not guilty of all 19 charges, including accusations of engaging in fraudulent transactions, market manipulation, and accounting fraud during the 2015 merger between Cheil Industries and Samsung C&T.
Prosecutors claimed that the merger, orchestrated by Samsung's Future Strategy Office, was designed to facilitate Lee Jae-yong's smooth succession of the company and strengthen his control. They also accused the Samsung management of engaging in various illegal activities to keep the costs of the merger low and increase their power.
After a three-and-a-half-year trial, the first trial court ruled Lee Jae-yong's actions were not solely aimed at strengthening his control or facilitating succession, leading to his acquittal.
According to Yonhap News, the appeal's outcome could be significantly influenced by a decision in August 2024 from the Seoul Administrative Court, which ruled on the Securities and Futures Commission's penalty against Samsung Biologics.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
