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Court Clears Samsung's Jay Y. Lee of Fraud and Stock Manipulation Charges
Samsung Electronics Chairman Jay Y. Lee was cleared of charges related to accounting fraud and stock manipulation by a Seoul appeals court on Monday, a ruling that could end the long-standing legal challenges he has faced.
The Seoul High Court upheld the earlier court decision that dismissed all charges in a case tied to a 2015 merger that prosecutors claimed was intended to secure Lee’s control of the company.
Lee’s legal issues have been a major distraction as he faced growing doubts about his leadership at Samsung Electronics, the world’s leading memory chip and smartphone maker, amid rising competition and sluggish stock prices.
“It took a long time. We hope that with this ruling, the defendants can now focus on their work,” said Lee’s lawyer, Kim You-jin, after the verdict.
For nearly 10 years, Lee has dealt with legal battles, including those related to the 2015 merger, which helped position him as the successor after his father, Lee Kun-hee, suffered a heart attack in 2014, leaving him in a coma.
A lower court last year cleared Lee of all charges related to the $8 billion merger between Samsung C&T and Cheil Industries.
Prosecutors appealed, pushing for a five-year jail sentence, citing a ruling in August that accused Samsung BioLogics, a Cheil Industries affiliate, of overstating its assets to justify the merger.
The judge acknowledged that BioLogics’ actions were inappropriate, but ruled that they were based on financial realities and rational reasoning.
The court also dismissed claims that the merger caused financial harm to Samsung C&T shareholders.
Lee did not respond to reporters' questions as he left the court on Monday. He has always denied any wrongdoing, stating in court last November, “I never intended to deceive or harm investors for personal gain.”
It was unclear whether prosecutors would appeal the ruling to the Supreme Court.
Following the decision, Samsung’s stock dropped by 2.7%.
Source:
Samsung chief cleared of fraud and stock manipulation charges | CNN business (2025) CNN. Available at: https://edition.cnn.com/2025/02/03/tech/south-korea-samung-jay-y-lee-cleared-charges-intl-hnk/index.html (Accessed: 09 February 2025).
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