Samsung chief Lee Jae-yong acquitted in stock manipulation case
Samsung Electronics's billionaire leader, Lee Jae-yong, has been acquitted by a Seoul court on charges of stock manipulation and accounting fraud related to a controversial 2015 merger between two Samsung subsidiaries. This verdict is a significant relief for Lee who has been battling legal issues for years. In 2020, prosecutors sought a five-year prison sentence for Lee, claiming that he and other executives artificially inflated the stock price of Cheil Industries and undervalued Samsung C&T before the merger.
Lee acquitted due to insufficient evidence
Seoul Central District Court's chief judge stated that there was insufficient evidence to prove that Samsung deliberately caused losses to Samsung C&T and its shareholders through the merger. The judge said, "Even if Lee's control has been strengthened, the merger in this case cannot be considered unfair, as long as there is a reasonable purpose for the merger." It is still uncertain whether prosecutors will appeal the ruling. Lee's lawyers maintained that the merger helped management in becoming more stable.
Experts surprised at the acquittal of Lee
CNN reported that experts are surprised at the acquittal of Lee Jae-yong. Park Sangin, an economics professor at Seoul National University, said that the decision could "lead to lowering the confidence of foreign investors in the Korean legal system and the soundness of the Korean capital market." In a separate case, Lee was previously convicted of bribery and other corruption charges in 2017 but was released on parole in August 2021 and pardoned in 2022.
