In a surprising ruling, Samsung Electronics Chairman Jay Y. Lee has been found not guilty of accounting fraud and stock manipulation by a Seoul court. The case revolved around a 2015 merger of Samsung affiliates, with prosecutors claiming it was orchestrated to solidify Lee’s control over the tech group.
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Despite prosecutors seeking a five-year jail term, Lee argued that the merger was in the best interest of shareholders. The unexpected verdict, which could be appealed by prosecutors, spares Lee from returning to jail. Lee was previously convicted in 2017 but was pardoned in 2022 for bribery charges related to former President Park Geun-hye’s friend.
In this case, prosecutors accused Lee and other executives of violating the Capital Markets Act in engineering a merger that allegedly disregarded minority shareholders’ interests. South Korea’s major conglomerates, including Samsung, remain controlled by their founding families, prompting a mix of public anger and acknowledgment of their contribution to the country’s economic success. As of end-September, the Lee family and related entities held a 20.7% stake in Samsung Electronics.
