Samsung C&T, Jeil Industries Unfair Merger Allegation Appeal Trial
Chairman Lee Found Not Guilty of All 19 Charges in First Trial
Prosecutors: “There is a significant difference from the first trial verdict… We will correct it”, ‘[Edaily Reporter Park Jeong-soo] The second trial of Lee Jae-yong, the chairman of Samsung Electronics (005930), who was indicted for leading the unfair merger of Samsung C&T (028260) and Jeil Industries, is about to begin.’,
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, ‘On the 27th, the 13th Criminal Division of the Seoul High Court (Chief Judge Baek Kang-jin) will hold the first preparatory hearing for the appeal trial of Lee and 14 others, including Choi Ji-sung, former head of Samsung Group’s Future Strategy Office, who were indicted for violating the Capital Market and Financial Investment Business Act and other charges.’,
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, ‘Lee, under the Future Strategy Office for the purpose of succession of management rights, was indicted in September 2020 on charges of planning and promoting the merger of Samsung C&T and Jeil Industries in 2015, and committing accounting irregularities and improper transactions in the process.’,
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, ‘The prosecution reported that Lee and the Future Strategy Office deliberately spread false information, concealed important information, made false positive disclosures, manipulated the market price, made false public announcements, etc., during the merger stage, despite knowing that the merger would harm Samsung C&T. They demanded a prison sentence of 5 years and a fine of 500 million won for Lee.’,
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, ‘Three years and five months after the indictment, the Seoul Central District Court’s Criminal Agreements 25-2, which presided over the first trial in February, acquitted Lee of all 19 charges.’,
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, ‘At that time, the court ruled that there was no evidence to prove any of the charges against Lee and others indicted on charges of violating the Capital Market and Financial Investment Business Act. Lee and all other current and former Samsung Electronics employees involved in the case were also acquitted.’,
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, ‘The Seoul Central District Prosecutors’ Office filed an appeal against the first trial verdict.’,
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, ‘At that time, the prosecution explained, “There is a significant difference between the first trial verdict and our views on evidence assessment, acknowledgment of facts, and legal judgment regarding the purpose and process of the group’s succession of management rights through the Samsung C&T-Jeil Industries merger, accounting irregularities, and improper transaction behaviors. To strive for unity in fact-finding and legal interpretation and to correct it, we filed an appeal.”‘,
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