Seoul: An appellate court on Monday upheld the acquittal of Samsung Electronics Co. Chairman Lee Jae-yong in accounting fraud and other irregularities related to the controversial merger of two Samsung affiliates in 2015.
The Seoul High Court confirmed the not-guilty verdict for Lee, who was indicted on charges of involvement in stock price manipulation, accounting fraud and other irregularities during the merger of Cheil Industries and Samsung C&T, which prosecutors suspect was aimed at taking control of South Korea’s biggest conglomerate at a lower cost.
“It is difficult to say the merger was carried out without the two companies’ consent, as it was decided under arrangement and cooperation of Samsung C&T Corp., Cheil Industries Inc. and Samsung’s Future Strategy Office,” the court said, dismissing the prosecution’s claim that Samsung’s control tower office had unilaterally come up with the merger decision, reports Yonhap news agency.
The merger was seen as crucial to Lee’s succession as heir of the family-controlled group, as his father, Lee Kun-hee, had suffered a heart attack the previous year.
A lower court acquitted the younger Lee of all 19 charges last February, saying it found no illegalities in the succession process.
The appeals court also rejected charges of Lee’s involvement in false corporate disclosures and accounting fraud at Samsung Biologics, a subsidiary of Cheil Industries, saying the company did not appear to have concealed information.
Moreover, the court rejected the legality of major pieces of evidence submitted by the prosecution, saying “legality and procedural legitimacy must be preceded.”
In particular, the court said it had “strong suspicions” that computer servers obtained by the prosecution from Samsung Biologics during a raid were collected beyond the scope specified in the warrant.
In response to the ruling, prosecutors said they will consider taking the case to the Supreme Court after thoroughly reviewing the high court’s decision.
The Korea Chamber of Commerce and Industry, the country’s leading business lobby group, said the verdict for Lee will help Samsung Group, the country’s biggest conglomerate, ride out growing uncertainties in the face of rapid changes in the artificial intelligence and semiconductor industries.
(IANS)
