The South Korean Appeals Court has ruled that Jay Y. Lee did not manipulate stock prices or unlawfully gain an advantage by merging companies.
In 2015, two Samsung companies merged: Cheil Industries, which was involved in textiles and fashion, and Samsung C&T, which operated in construction and trade. The merger resulted in Jay Y. Lee gaining more control. Prosecutors argued that this merger helped him take greater control of the company. They also claimed that shareholders were harmed, as Samsung C&T’s stock price dropped, leading to financial losses for many people.
The court clarified that Jay Y. Lee and other Samsung executives did not engage in any illegal actions. The merger was carried out with the mutual agreement of both companies. There was no evidence to prove that the merger was done for the personal benefit of Samsung's leadership. In other words, the decision to merge was made after discussions between both companies.
After the court's decision, prosecutors may reconsider the ruling and possibly appeal to the Supreme Court.
Jay Y. Lee faced these charges in 2020. During the 2023 trial, he argued that the merger process followed the company’s standard procedures. At that time, prosecutors had sought a five-year prison sentence and a fine of $375,000 for Jay Y. Lee. However, the court ruled that Jay Y. Lee and the other Samsung executives were innocent. This decision brings an end to nearly 10 years of legal disputes for Jay Y. Lee.
