Manipulation allegations

Court confirms acquittal of Samsung boss Lee

Samsung boss Jay Y. Lee entering the courthouse(Bild: AFP/APA/JUNG YEON-JE)

In the trial concerning alleged accounting fraud and share price manipulation, an appeals court confirmed the acquittal of Samsung boss Jay Y. Lee on Monday. "It took a long time. We hope that the defendants will be able to concentrate on their work after the latest verdict," said Lee's defense lawyer Kim You-jin. The Samsung boss himself did not wish to comment as he left the courtroom.

He and other managers had been accused of disregarding the rights of minority shareholders during an 8 billion dollar (7.7 billion euro) merger of two Samsung subsidiaries in 2015. The prosecution had demanded five years in prison, but Lee denied the accusations.

Lee family holds more than a fifth of Samsung
It initially remained unclear whether the public prosecutor's office would appeal to the Supreme Court following the Court of Appeal's ruling. The case concerned Samsung C&T and Cheil Industries. Before their merger, Lee's family controlled Cheil, but not Samsung C&T. The latter was a major shareholder in the smartphone and consumer electronics provider Samsung Electronics, the crown jewel of the entire group. Lee's family and affiliated companies currently hold just under 21 percent of Samsung Electronics.

South Korea's largest corporate conglomerates are still owned and controlled by their founding families. Public opinion has long fluctuated between acknowledging their contribution to the country's economic success and anger over various scandals. For example, Samsung boss Lee spent a total of 18 months in prison a few years ago for bribing former South Korean President Park Geun-hye.