Samsung executive acquitted in controversial financial crime case
Kyiv • UNN
The court acquitted Samsung Electronics CEO Lee Jae-yong of accounting fraud charges related to the merger of two Samsung subsidiaries in 2015.
A South Korean court acquitted Samsung Electronics CEO Lee Jae-yong, who was previously accused of accounting fraud in connection with the controversial merger of two Samsung subsidiaries in 2015.
This was reported by UNN with reference to The Associated Press and Yonhap.
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Samsung President Lee Jae-yong has been prosecuted for accounting fraud in connection with the merger of two companies in the group in 2015. Today it became known that a South Korean court found that there was no "intent to harm shareholders" through the merger, which, according to the heir apparent's critics, was intended, among other things, to ensure an unimpeded transfer of power to Lee Jae-yong, a descendant of the Samsung founding family.
The court stated that the prosecutor's office failed to sufficiently prove that the merger of Samsung C&T and Cheil Industries was conducted illegally in order to strengthen Lee Jae-yong's control over Samsung Electronics.
A ruling by the Seoul Central District Court on Monday could ease the legal woes of Samsung's heir less than two years after he was pardoned on a separate charge of bribing a former president in a corruption scandal that led to the overthrow of the previous South Korean government.
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In November, prosecutors demanded a five-year prison sentence and a fine of 500 million won ($376,000) for Lee Jae-young, who was previously accused of manipulating the company's share price and accounting fraud.
His acquittal comes as a relief to the world's largest chip, smartphone and TV maker, which is struggling with a global slowdown and fierce competition from Apple in smartphones and South Korea's SK Hynix in artificial intelligence.
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