Samsung chief acquitted in 2015 merger case

A South Korean court on Monday cleared Samsung Electronics Chairman Lee Jae-yong of charges of financial misconduct related to a 2015 merger that prosecutors said was aimed at consolidating his power within the conglomerate.

The verdict potentially eases Lee’s legal troubles, following the Samsung heir’s pardon for a separate conviction for bribing a former president who led President Park Geun-hye’s government.

Court considers insufficient evidence

The Seoul Central District Court found insufficient evidence to support allegations that the merger between two Samsung affiliates – Samsung C&T and Cheil Industries – was maliciously intended to reinforce Lee’s control over Samsung Electronics.

The court said it “did not recognize the intent to harm shareholders” through the merger.

“Solidifying Lee’s control and ensuring his succession was not the sole purpose of the merger,” the court ruled.

Lee denied any wrongdoing, arguing that the merger was part of “normal business activity” and was intended to benefit shareholders.

“I swear I never imagined increasing my stake at the expense of causing harm to other shareholders,” he said in his closing argument, according to South Korean news agency Yonhap.

The prosecution, which proposed a five-year prison sentence for Lee on charges including stock price manipulation and accounting fraud, did not reveal plans for an appeal.

Lee served 18 months in prison

In 2017, Lee was saddened by separate bribery charges related to the 2015 deal and served 18 months in prison.

He was initially sentenced to five years for bribing former President Park Geun-hye to gain government support for the merger, seen as crucial to his control over Samsung.

He was pardoned in 2022 by current President Yoon Suk Yeol, with the government seeking his help in overcoming a “national economic crisis”.

ss/kb (AP, AFP, Reuters)