South Korean prosecutors are seeking a five-year prison sentence and a $375,000 fine for Samsung Electronics Chief Jay Y. Lee. This appeal follows Lee's acquittal 10 months prior on charges of stock manipulation and accounting fraud related to a 2015 merger that strengthened his control over Samsung.
The appeals court decision, expected between January and February 2025, comes as Samsung faces declining profits. The case highlights South Korea's corporate reform efforts, impacting both large conglomerates (chaebols) and the broader tech ecosystem. Prosecutors argue that leniency would encourage unlawful business practices.
This isn't Lee's first encounter with legal challenges. In 2023, prosecutors made similar sentencing requests, linking the 2015 merger of Samsung affiliates to Lee's consolidation of power. Lee maintains the merger was standard procedure. The case involves allegations of inflated stock prices and fraudulent accounting at Samsung Biologics, connected to the merger of Cheil Industries and Samsung C&T.
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