Samsung’s Executive Chairman Jay Y. Lee Cleared of Criminal Charges

South Korea’s second-highest court has cleared Samsung’s executive chairman Jay Y. Lee of criminal charges, according to a report by Bloomberg. The Seoul High Court upheld an earlier decision acquitting Lee of stock manipulation and accounting fraud charges related to a 2015 merger.

The ruling will allow Lee to focus on Samsung’s mobile and chip businesses, which have seen declining profits over the past couple of years. Lee has consistently denied committing any crimes.

Background of the Case

Prosecutors had accused Lee of manipulating the share price of two Samsung subsidiaries to smooth the way for a merger that allowed him to consolidate his power. However, in early 2024, the court ruled that the prosecutors failed to prove that Lee was involved in the merger.

Previous Rulings

In 2017, Lee was originally sentenced to five years in prison for bribing public officials over the same merger. However, the Supreme Court overturned that decision and ordered the case to be retried. In the retrial, Lee was sentenced to two-and-a-half years of prison time in early 2021, and then paroled half a year later. In 2022, Lee was pardoned by South Korean President Yoon Suk Yeol.

Reaction to the Ruling

The ruling has been hailed by business groups, but not everyone in the country agrees. Park Ju-geun, head of corporate thinktank Leaders Index, stated, "The ruling will free Lee of legal risks, but I am at a loss for words in terms of the country’s economic justice." This goes totally against all previous court rulings on the merger.

Appeal to the Supreme Court

The prosecution can still appeal to the Korea’s Supreme Court, but experts say that it would be unlikely to succeed since no new arguments could be presented. "It has been a very long time in the investigation and trial of this case," said Samsung lawyer Kim You Jin in a statement. "We hope that with this verdict, the defendants can now focus on their work."

Conclusion

The ruling clears Jay Y. Lee of criminal charges, allowing him to focus on Samsung’s mobile and chip businesses. However, the case has sparked controversy, with some questioning the country’s economic justice. The prosecution can still appeal to the Supreme Court, but it is unlikely to succeed.