Samsung chief Lee Jae-yong acquitted of financial crimes by South Korean court

Samsung Electronics Chairman Lee Jae-yong was acquitted by the Seoul Central District Court of financial crimes on February 5 that were tied to a controversial merger between two Samsung affiliates in 2015. This merger, involving Samsung C&T and Cheil Industries, was scrutinized for allegedly being orchestrated to bolster Lee's control over the conglomerate, which is South Korea's largest company.

The prosecution had sought a five-year jail term for Lee on charges of stock price manipulation and accounting fraud. However, the court found that the evidence presented did not conclusively prove any unlawful intent behind the merger, which Lee described as "normal business activity." The acquittal could potentially alleviate some of the legal pressures that have been shadowing Lee, who is a third-generation corporate heir and has been at the helm of the Samsung group since 2014 after his father, former chairman Lee Kun-hee, suffered a heart attack.

Lee Jae-yong's legal journey has been tumultuous. In 2017, he was convicted of offering bribes worth 8.6 billion won ($6.4 million) to then-President Park Geun-hye and her confidante to secure government backing for the 2015 merger, a pivotal move in cementing his leadership succession. He served 18 months in prison before being released on parole in 2021 and subsequently received a presidential pardon from President Yoon Suk Yeol in August 2022.

The 2015 merger faced opposition from some shareholders and sparked public outrage, leading to massive protests against the opaque connections between business and politics in South Korea. These events contributed to the eventual impeachment of President Park Geun-hye.

Despite the acquittal, Lee Jae-yong continues to navigate challenging times as the leader of a global tech giant amid geopolitical tensions, such as Russia's war on Ukraine, which have impacted the world economy and dampened technology spending. Samsung recently reported a 34% annual decline in operating profit for the last quarter of the previous year, highlighting the difficulties faced by the industry.

This latest court ruling marks another chapter in the complex interplay of law, business, and politics in South Korea, where the judiciary has shown leniency towards white-collar crimes and has often provided preferential treatment to convicted business tycoons. Lee Jae-yong's net worth, as of 2024, stands at 10.8 billion USD, reflecting his significant role in the country's economic landscape.

Also read: Assam budget session: Governor Gulab Chand Kataria's inaugural speech marred as opposition stages walkout