South Korea’s second-highest court has ruled to clear executive chairman Jay Y. Lee of criminal charges related to stock manipulation and accounting fraud. The ruling, handed down by the Seoul High Court, upholds a previous decision to acquit Lee of charges stemming from a 2015 merger that allowed him to consolidate his power within the tech giant. This verdict comes after years of legal battles, allowing Lee to focus on Samsung’s mobile and semiconductor divisions, which have recently seen declining profits.
A Legal Victory Amidst Ongoing Struggles
Lee has long denied any wrongdoing, asserting that he had no role in the alleged manipulation of Samsung’s stock price. Prosecutors initially claimed that the merger was orchestrated to secure Lee’s succession at the helm of Samsung. However, the court found insufficient evidence to support these accusations, with one judge stating that it was difficult to claim that the merger was executed solely for Lee’s benefit.
Experts suggest that an appeal to South Korea’s Supreme Court by prosecutors is unlikely to succeed, as no new arguments could be introduced. Samsung’s legal team, led by attorney Kim You Jin, expressed hope that the ruling would allow Lee and his colleagues to concentrate on business priorities.
Business Reaction and Public Discontent
While the decision has been met with approval from business groups, not everyone in South Korea is content with the outcome. Park Ju-geun, head of the corporate think tank Leaders Index, voiced disappointment over the ruling, highlighting concerns about the country’s economic justice. Park believes the decision contradicts prior court rulings on the merger and raises questions about accountability.
Lee’s legal troubles began in 2017, when he was convicted of bribing public officials to facilitate the merger. However, his sentence was overturned by the Supreme Court, and following a retrial, Lee was sentenced to prison in 2021 but was released on parole within six months. In 2022, Lee received a pardon from South Korean President Yoon Suk Yeol, amid a larger political scandal involving former President Park Geun-hye.
For further details, read the full report from Bloomberg here.