Samsung Electronics leader Lee Jae-yong has been acquitted by a Seoul court on Monday in connection with a controversial merger in 2015 of two Samsung affiliates. The charges included stock manipulation and accounting fraud.
This acquittal comes as a relief to Lee, who has faced legal issues for several years. In 2021, South Korean prosecutors sought a five-year prison sentence for Lee, alleging that he and other executives inflated the stock price of a textile company, Cheil Industries, and devalued a construction and engineering company, Samsung C&T, before the merger.
The prosecutors claimed that the merger allowed Lee to gain a tighter grip on Samsung Electronics, the group’s flagship company, where he serves as executive chairman.
Lee’s defense team denied any wrongdoing, arguing that the merger had actually helped stabilize the management of the conglomerate.
Following the ruling, it remains uncertain if prosecutors will appeal the decision, which has surprised legal experts.
The relief for Samsung comes at a time when the company is facing a sales slump and has recently lost its position as the world’s top smartphone maker to Apple (AAPL). Amid this, Lee had expressed his regret for the difficulties suffered by Samsung and its shareholders during his trial last year.
Looking ahead, Lee expressed his intention to help Samsung become a top-notch company and to focus all his capabilities on its progress.
