South Korea’s highest court has cleared Lee Jae-young, the executive chairman of Samsung Electronics, of the alleged fraud accusation over a merger deal in 2015. Lee Jae-young, the company head since 2014, had been accused of misusing stock and accounting fraud to control the firm. In the final verdict announced by the Seoul Supreme Court, he was found not guilty and acquitted of all the charges.
Lee Jae-Young Freed From a Year-Long Legal Drama!
The Supreme Court of Seoul on Thursday upheld the acquittal of Lee Jae-young when he was cleared of the charges connected with a controversial merger deal of Samsung C&T and Cheil Industries nine years ago. The verdict from South Korea’s top court has backed two lower court rulings and finally cleared him of the alleged stock manipulations related to a merger deal worth 8 billion U.S dollars in 2015. Finally, the Supreme Court verdict permanently ended the long-running legal battle and distraction of Lee Jae-young.
The primary allegation against the deal between Samsung C&T and Cheil Industries involved the case was that the deal was designed to create a foundation for Lee’s control over the tech firm. The prosecutors also claimed that Samsung and Lee Jae-young had manipulated the stock market to show an inflated price of Samsung Biologics, his pharmaceutical firm, through different kinds of malicious and unfair accounting practices.
The Samsung lawyers responded to the case drop by stating that the Supreme Court had confirmed through its final ruling that the merger of Samsung C&T and the accounting treatment of Samsung Biologics were lawful. They expressed their sincere gratitude to the court for its wise judgment following a thorough five-year trial process.
Lee didn’t appear at court, and his legal representatives welcomed the ruling. They claimed that the ruling by the Supreme Court affirms the legality of the merger between Samsung C&T and the accounting practices of Samsung Biologics.
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The Post-Allegation Journey of Lee Jae-Young
His post-allegations journey started in 2017. Lee was jailed for 18 months in a separate fraud and misappropriation case following an investigation that also brought down Park Geun-hye, the former president. Lee served two separate prison terms, and despite the active legal battles, he was released on parole and got a special presidential pardon in 2022 by President Yoon Suk Yeol.
The government justified this action by emphasising the role of Samsung in the South Korean economy and the need to recover from the financial struggle caused by the COVID-19 pandemic. His legal battle currently ends with the latest Supreme Court verdict and the decision to uphold the acquittal of Lee’s controversial 2015 merger. The Supreme Court’s decision brings a finality to the case since the decision cannot be challenged or appealed. This could put an end to Lee’s legal challenges.
Kim Dae-jong, a professor at Sejong University, told AFP that Chairman Lee was likely to resume a more public role, with his leadership becoming more visible through overseas trips, investment announcements, and participation in major events. He mentioned that being freed from legal burdens would allow Lee to push for more innovative future strategies.
