Seoul: South Korea prosecutors have accused Lee Jae-Yong, the successor of Samsung Group, of share price manipulation and other financial irregularities. These allegations have led to the possibility of a prolonged legal battle over whether the 52-year-old billionaire illegally established control of the giant. Lee’s lawyers have dismissed the allegations. Similar allegations have been made against ten other current and former executives of Samsung.
Lee’s lawyers have called the investigators’ claims unilateral. Li’s lawyers said the controversial merger of Samsung’s two entities in 2015 was a ‘normal business activity’. It was through this merger that Lee established his control over the group’s flagship company, Samsung Electronics. Samsung Electronics is the world’s largest computer chip and smartphone company. A Seoul court earlier rejected prosecutors’ request to arrest Lee. Yong took over the leadership of the group after Samsung Electronics Chairman Lee Kun-hee fell ill in May 2014. Lee and other Samsung executives have been charged with share price disturbances, breach of trust, and audit violations in the 2015 merger. At that time there was a merger between Samsung C&T Corp and Chel Industries.
Lee Jae Yong was sentenced to five years in 2017 for offering a bribe of 8.6 billion won to former South Korean President Park Geun Hee and one of his colleagues. Lee offered bribes to support the government over the 2015 merger. This merger was completed despite opposition from some shareholders. Park was removed from office in March 2017. He is in jail on bribery and misuse of power and other charges of corruption.
Lee was released in February 2018 following a decision by the Seoul High Court to reduce his sentence to two-and-a-half years and keep the sentence adjourned. However, the case was later referred to the High Court by the Supreme Court. Some legal experts say that if Lee is found guilty, he can be sent to prison again.
