Top Samsung Electronics executive acquitted of stock manipulation charges

Top Samsung Electronics executive acquitted of stock manipulation charges،

According to CNNLee Jae-yong, billionaire and head of Samsung Electronics, was acquitted today by a Seoul court of stock manipulation and accounting fraud linked to the merger of two Samsung subsidiaries in 2015. The executive was allegedly involved with other Samsung executives in a scheme to artificially inflate the stock price of textile company Cheil Industries, while devaluing the stock price of Samsung C&T, a construction company, before their merger.

Prosecutors said that by completing the merger, Lee would be able to gain tighter control over Samsung Electronics, the group's flagship company. Lee's lawyers refuted the claim and said the merger was done to help stabilize the management of the huge conglomerate.

According to Seoul Central District Court Chief Judge Park Jung-jae, there was not enough evidence to show that Samsung planned to cause losses to Samsung C&T shareholders and the subsidiary itself. The judge said: “Even if Lee's control has been strengthened, the merger in this case cannot be considered unfair, as long as it serves a reasonable purpose.”

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In a separate case, Lee was convicted of bribery and other corruption charges in 2017 and sentenced to five years in prison. He was released after less than a year in prison, as an appeals court dismissed several of the charges against him and suspended his sentence. In January 2021, Lee was returned to prison after being convicted by the Seoul High Court of embezzlement and corruption. He was conditionally released in August 2021 and pardoned a year later.

Park Sangin, an economics professor at Seoul National University, said of today's verdict: “It's a totally shocking verdict.” Sangin also said the ruling would “lead to diminishing foreign investors' confidence in the Korean legal system and the strength of the Korean capital market.”