Samsung chief Lee Jae-yong is acquitted of financial crimes related to the 2015 merger
Seoul: A South Korean court on Monday acquitted SAMSUNG Electronics Speaker Took Jae-yong is convicted of financial crimes related to a controversial merger between Samsung affiliates in 2015 that tightened his grip on South Korea’s largest company. The Seoul Central District Court decision could ease the legal troubles surrounding Samsung’s successor, coming less than two years after he was pardoned from a separate bribery conviction in a corruption scandal that rocked the previous South Korean government. Was dropped.
The court said the prosecution failed to adequately prove that the merger between Samsung C&T and Cheil Industries was carried out unlawfully with the aim of strengthening Lee’s control over Samsung Electronics.
Prosecutors had sought five years in prison for Lee, who was charged with stock price manipulation and accounting fraud. It was not immediately clear whether they would appeal. Li had denied wrongdoing in the current case and described the 2015 merger as “normal business activity.”
Lee, 56, did not answer questions from reporters as he left the court. You jin kimLee’s lawyer praised the court for confirming that the merger was legal.
Lee, a third-generation corporate heir who was officially appointed chairman of Samsung Electronics in October 2022, has led the Samsung group of companies since 2014, when his late father, former Chairman Lee Kun-hee, took over. Had a heart attack.
Lee Jae-yong spent 18 months in prison after being convicted in 2017 on separate bribery charges related to the 2015 deal. He was originally sentenced to five years in prison for offering a bribe of 8.6 billion won ($6.4 million) to then-President Park Geun-hye and her close confidant to gain government support for the 2015 merger. , which was important for consolidating their control. Consolidating the Samsung business empire and father-to-son leadership succession.
Lee was released on parole in 2021 and pardoned by the South Korean President yoon suk yeol In August 2022, South Korea’s history of leniency towards major white-collar crime and preferential treatment for convicted tycoons was further extended.
Some shareholders opposed the 2015 merger, saying it unfairly benefited the Li family while causing losses to minority shareholders. There was also public anger over how the National Pension Fund’s stake in the merged entity Samsung C&T fell by an estimated hundreds of millions of dollars, after Park pressured the National Pension Service to support the deal. .
Park and her confidants were also convicted in the scandal and angry South Koreans staged months of mass protests demanding an end to shady ties between business and politics. The demonstrations ultimately led to Park’s dismissal from office.
As the leader of one of the world’s largest makers of computer chips and smartphones, Lee is going through one of his toughest periods yet, with Russia’s war on Ukraine and other geopolitical turmoil threatening the world economy. Losses are being incurred and technology spending is declining.
The company last week reported an annual 34% decline in operating profit for the October-December quarter, as sluggish demand for its TVs and other consumer electronics products eroded its hard-earned gains from a gradually shrinking memory chip market. done. (AP) AIIMS
The court said the prosecution failed to adequately prove that the merger between Samsung C&T and Cheil Industries was carried out unlawfully with the aim of strengthening Lee’s control over Samsung Electronics.
Prosecutors had sought five years in prison for Lee, who was charged with stock price manipulation and accounting fraud. It was not immediately clear whether they would appeal. Li had denied wrongdoing in the current case and described the 2015 merger as “normal business activity.”
Lee, 56, did not answer questions from reporters as he left the court. You jin kimLee’s lawyer praised the court for confirming that the merger was legal.
Lee, a third-generation corporate heir who was officially appointed chairman of Samsung Electronics in October 2022, has led the Samsung group of companies since 2014, when his late father, former Chairman Lee Kun-hee, took over. Had a heart attack.
Lee Jae-yong spent 18 months in prison after being convicted in 2017 on separate bribery charges related to the 2015 deal. He was originally sentenced to five years in prison for offering a bribe of 8.6 billion won ($6.4 million) to then-President Park Geun-hye and her close confidant to gain government support for the 2015 merger. , which was important for consolidating their control. Consolidating the Samsung business empire and father-to-son leadership succession.
Lee was released on parole in 2021 and pardoned by the South Korean President yoon suk yeol In August 2022, South Korea’s history of leniency towards major white-collar crime and preferential treatment for convicted tycoons was further extended.
Some shareholders opposed the 2015 merger, saying it unfairly benefited the Li family while causing losses to minority shareholders. There was also public anger over how the National Pension Fund’s stake in the merged entity Samsung C&T fell by an estimated hundreds of millions of dollars, after Park pressured the National Pension Service to support the deal. .
Park and her confidants were also convicted in the scandal and angry South Koreans staged months of mass protests demanding an end to shady ties between business and politics. The demonstrations ultimately led to Park’s dismissal from office.
As the leader of one of the world’s largest makers of computer chips and smartphones, Lee is going through one of his toughest periods yet, with Russia’s war on Ukraine and other geopolitical turmoil threatening the world economy. Losses are being incurred and technology spending is declining.
The company last week reported an annual 34% decline in operating profit for the October-December quarter, as sluggish demand for its TVs and other consumer electronics products eroded its hard-earned gains from a gradually shrinking memory chip market. done. (AP) AIIMS
