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Samsung Electronics Chairman Lee Jae-yong exits the Seoul High Court after being acquitted in the appeals trial on allegations of unfair merger and accounting fraud related to the group's management succession on the afternoon of the 3rd. (Photo = Yonhap News) |
[Alpha Biz= Kim Jisun] On Monday (3rd), the Seoul High Court acquitted Samsung Electronics Chairman Lee Jae-yong of all 19 charges, following the first-instance ruling.
The court determined that the merger between Cheil Industries and Samsung C&T was not solely aimed at strengthening Lee’s management succession or control over the group.
All Samsung executives who were on trial alongside Lee were also acquitted. The court stated that the merger was based on mutual agreement and independent review by both companies, with no sufficient evidence proving it was dictated by unilateral decision-making.
Additionally, the prosecution's claim that the merger’s timing and ratio were unfairly set to benefit Lee lacked sufficient proof, according to the ruling.
Although a previous Seoul Administrative Court ruling in August 2023 partially acknowledged accounting fraud allegations against Samsung Biologics, it did not significantly impact the verdict.
The court acknowledged inappropriate manipulation of valuation reports but concluded that multiple expert reviews were conducted, and intentional accounting fraud was not sufficiently established.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
