Seoul: The Supreme Court has finalized the acquittal of Samsung Electronics Co. Chairman Lee Jae-yong in the controversial merger case from 2015, bringing a significant chapter in South Korea's corporate legal history to a close. The decision concludes a lengthy legal battle that followed Lee's indictment on charges of unfair trading, stock price manipulation, and accounting fraud related to the merger of Samsung affiliates Cheil Industries Inc. and Samsung C and T Corp.
According to Yonhap News Agency, the merger was pivotal for Lee's succession within the family-controlled conglomerate, especially after his father, Lee Kun-hee, suffered a heart attack in 2014. Prosecutors alleged that the merger and associated activities were designed to cement Lee's control over the conglomerate at a low cost. Despite these claims, Lee was acquitted of all charges in both the first and second trials, which included additional accusations.
The Supreme Court has rejected the prosecution's appeal, affirming that there were no errors in the initial rulings. This decision also upholds the acquittals of 13 other individuals and entities involved in the case, among them Choi Gee-sung, the former head of Samsung's now-defunct Future Strategy Office. Lower courts had previously dismissed claims that Lee fabricated documents and exercised undue influence to facilitate the merger, also noting that some evidence was either gathered illegally or could not be legally recognized.
Specifically, the prosecution's failure to adhere to proper procedures during the confiscation of computer servers and the search of text messages was highlighted. The lower courts also found that the financial statements of Samsung Biologics, a Cheil Industries subsidiary, accurately reflected the economic reality, dismissing the accounting fraud charges. The Supreme Court's decision supports these findings.
Lee's lawyer expressed gratitude to the court for what he described as a "wise verdict," emphasizing that the Supreme Court's decision confirmed the legality of both the Samsung C and T merger and the accounting practices of Samsung Biologics.