Samsung CEO acquitted, ``judicial risk'' removed, says South Korean media

Samsung Group, South Korea's largest conglomerate, was accused of fraud in the succession of its management rights, and was charged with violating the Capital Markets Act and breach of trust.
The Seoul Central District Court acquitted the chairman of Samsung Electronics on the 5th of this month. There were concerns that if Mr. Lee were found guilty and imprisoned, it would affect the group's management, but he decided not to acquit him.
With the win, a major cause for anxiety was alleviated. Korean media said, ``With this ruling, Chairman Lee and the Samsung Group will be able to move forward with corporate management without the ``judicial risk.''
'' (JoongAng Ilbo). According to the indictment and other documents, Mr. Lee was involved in the merger of Samsung Group companies Cheil Industries and Samsung C&T in order to increase his control over the group.
He was charged with violating the Capital Markets Act and breach of trust for manipulating the stock price of the merged company. At the sentencing hearing on the 5th, the district court stated that the merger of the two companies was done for the sole purpose of passing on management rights to Chairman Lee.
``There is insufficient evidence to suggest that the merger is not just to inherit management rights or strengthen Lee's control,'' he said, pointing out that the merger cannot be viewed as unjust overall. Lee acquitted (5 years in prison, 500 million yen fine)
won (approximately 56 million yen). All 13 group executives who were also indicted were also acquitted. According to Yonhap News, Lee was arrested at 1:40 p.m., 20 minutes before the trial began.
Arrived at the district court. Mr. Lee, wearing a dark gray suit, had a hard expression on his face. In the courtroom, the presiding judge remained expressionless while reading the purpose of the judgment, but about 50 minutes after the reading of the judgment began, the presiding judge
When he acquitted all the defendants, he reportedly smiled, perhaps relieved. However, after the court adjourned, Mr. Lee did not respond to reporters' interviews and left the courtroom without saying a word. Mr. Lee's lawyer said, ``
This ruling clearly confirms that (the series of transactions) is legal." Prior to this trial, Lee had been accused of bribing former President Park Geun-hye and others in 2017.
He was arrested on the charges and later sentenced to two years and six months in prison. However, after he was released on parole in August 2021, he was released on parole on August 15, 2022.
They were granted amnesty in conjunction with the National Liberation Day), and were able to engage in free economic activities. In October of the same year, he became chairman of Samsung Electronics.
Years of legal battles, including those related to this bribery scandal
Mr. Lee has been embroiled in this case, but with the district court's ruling on the 5th, the judicial risk will be resolved. Yonhap News reported the reaction of the Korean business community. According to a related article, the Korean Chamber of Commerce and Industry welcomes the ruling.
He said, ``I hope that this ruling will be of great help to Korean companies' global competition to secure leadership in cutting-edge industries, and to the Korean economy, which is currently on the verge of recovery.'' The Korean Trade Association is
It is hoped that the legal risks surrounding the global company Samsung will be resolved and this will help South Korea's exports and economic revitalization. Semiconductor demand recovers and global competition for investment in cutting-edge industries intensifies
"Given the current environment, we are pleased with the ruling." JoongAng Ilbo, a South Korean newspaper, said in an editorial on the 6th, ``Due to the five years and six months of tedious battles leading up to the investigation and trial, Samsung was unable to avoid a management vacuum.''
There wasn't," he pointed out. ``Now that Samsung has eliminated the legal risk, it must speed up acquisitions, mergers, and investments to reorganize its control tower and secure new business in the future.''
It must be done,” he insisted. Samsung's business environment is difficult, and operating profit for the fiscal year ending December 2023 fell to the lowest level in 15 years. The world's number one spot in smartphones has been surrendered to Apple
did. JoongAng Ilbo pointed out, ``Now is the time to firmly overcome 'business risks.'' Meanwhile, according to multiple Korean media reports, the prosecution plans to appeal the verdict.
suggested. According to Yonhap News, an official from the Seoul Central District Public Prosecutors Office said on the 7th regarding the first instance verdict, ``I think they did not accept the prosecution's argument at all and adopted the defense's unilateral argument.I am not convinced.''
There is a leprosy part,'' he said. The prosecutor's office said, ``We will decide whether to appeal after analyzing the factual findings and legal judgment in the judgment.'' The deadline for filing an appeal is the 13th of this month.