Samsung chief cleared of all charges related to 2015 merger case

[Photo by Han Joo-hyung]

Samsung Electronics Co. Executive Chairman Jay Y. Lee was acquitted of all charges related to the controversial merger of Cheil Industries Inc. and Samsung C&T Corp. in 2015, which allegedly helped bolster his control over South Korea’s top conglomerate.

The Seoul Central District Court on Monday found Lee not guilty of violating the Capital Market Act and Act on External Audit of Stock Companies and breach of duty.

The latest verdict came 1,252 days after his indictment by the prosecution on September 1, 2020.

The prosecution had sought a five-year prison sentence and a fine of 500 million won ($374,672).

“There is no evidence of the crimes alleged in this case,” the court said.

All of the other 13 defendants indicted along with Lee were also acquitted, including Choi Gee-sung, former head of Samsung Group’s Future Strategy Office (FSO), Kim Jong-joong, former head of FSO strategy team, and Jang Chung-ki, former deputy head of FSO.

The prosecution built its case around the merger of Cheil Industries and Samsung C&T in 2015, alleging that Lee committed various illegal acts and made decisions against the interests of shareholders and the company during the merger to ensure his succession.

The court, however, said that “it cannot be conclusively determined that the sole purpose of the merger was to strengthen the defendant’s control and succession of management rights.”

It was also noted that the merger was driven by an attempt to overcome Samsung C&T’s stagnant growth.