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Samsung Electronics executive chairman Jay Y. Lee has been declared not hangdog on the charge of stock cost handling and accounting fraud related to the merger of Samsung affiliates in 2015 , a South Korean Court ruled on Monday .
In the November sense of hearing , public prosecutor hadcalled for Lee to be in jailhouse for five yearsand a fine of 500 million KRW ( $ 375,000 ) over charge of violating the Capital Markets Act — accountancy fraud and stock manipulation connected to an $ 8 billion fusion of Samsung affiliates in 2015 . The South Korean prosecutors allege the uniting assist Lee secure his ascendancy of the Korean technical school giant .
Lee refuse his wrongdoing in the hearing last November and claimed that the merger and accounting processes were part of normal management activities for the company . Lee also said he had never had personal gain concerning the merger and had never tried harming other shareholders to increase his stake in Samsung ’s affiliate .
The ruling could still look appeals from prosecutors .
Merger case in 2015
There are three key takeout food the South Korean prosecutors lay claim . Lee , then frailty - hot seat of Samsung Electronics in 2015 , and other executives at the firm inflate the stock price ofCheil Industries , Samsung ’s cloth affiliate , and depreciated its construction subsidiary company , Samsung C&T , during the merger , which is an illegal mental process to benefit Lee , giving greater control of Samsung Electronics , the South Korean prosecutors arrogate .
agree to the prosecutors , Samsung ’s merger process took a toll on the shareholders of Samsung C&T.
Lee is also accused of engaging in a $ 3.9 billion account fake atSamsung Biologics , Samsung ’s biopharmaceutical unit , as part of the same case .
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“ The ruling confirmed that the merger of Samsung C&T and Cheil , as well as Samsung Biologics ’ accounting system , was legitimate , ” Lee ’s attorney said in a statement . “ I sincerely give thanks the lawcourt for making a sapient assessment . ”
In a disjoined case related to the merger , the Samsung chieftain was convict ofbribing former South Korean Chief Executive Park Geun - hye . Lee , who went to jail for 18 months from 2017 to 2021 , was parole in 2021 andwas grant a presidential free pardon in 2022 .
Samsung heir receives presidential pardon in a bid to ‘ overcome economical crisis ’
Hearings begin in Samsung vice chairman Jay Y. Lee ’s accounting fraud trial
