Lee Jae-yong, chairman of Samsung Electronics, was acquitted in the appeals trial following the first trial regarding the unfair merger allegations of Samsung C&T and Cheil Industries. In response, the prosecution noted that they would review whether to appeal to the Supreme Court.
On the 3rd, the prosecution stated in a message sent to reporters that they would carefully analyze the appeals court ruling regarding the purpose and circumstances of the Samsung C&T-Cheil Industries merger aimed at the succession of group control, evidence judgments regarding accounting fraud and unfair transaction acts, and legal judgments before deciding on an appeal.
On that day, the Seoul High Court's Criminal Division 13, presided over by Judge Baik Kang-jin, acquitted Lee of all charges related to unfair trading acts, stock price manipulation, and breach of trust under the Capital Markets Act. This is the same conclusion as in the first trial.
Earlier, the prosecution indicted Lee Jae-yong and executives in September 2020, stating that several illegal measures were taken to infringe on shareholders' interests for Lee's secure management succession during the process of merging the companies under the condition of exchanging one share of Cheil Industries for three shares of Samsung C&T in 2015.
The prosecution claimed that while Lee held 23.2% of Cheil Industries' equity and Samsung C&T, which was a shareholder of Samsung Electronics, did not own a single share, efforts were made at the group level to increase the corporate value of Cheil Industries and lower that of Samsung C&T to ensure a favorable merger for him.
To this end, the prosecution judged that methods such as spreading false information, concealing important information, announcing false positive news, purchasing key shareholders, illegal lobbying to secure voting rights for the National Pension Service, mobilizing the subsidiary Samsung Securities' organization, and manipulating stock prices through concentrated stock buybacks were implemented. During the sentencing hearing in November 2023, the prosecution sought a five-year prison sentence and a fine of 500 million won for Lee.
However, in February of last year, the first trial court ruled that there was insufficient evidence to recognize the prosecution's charges, acquitting Lee of all charges. The appeals court also acquitted Lee on that day.