Jay Y. Lee, chairman of Samsung Electronics, may face imprisonment along with 13 other Samsung executives for allegedly manipulating stock prices.
Lee is also at risk of incurring a fine of $375,000 in connection with the crime of the 2015 merger of Samsung subsidiaries.
In February, a Seoul Central District Court declared Lee not guilty of accounting fraud and stock manipulation; however, prosecutors have since appealed this ruling. For some time, Lee has faced scrutiny regarding his ability to lead Samsung, especially as the smartphone maker has struggled with slow profits and declining stock prices. He, along with other former executives, has been accused of orchestrating a merger between two Samsung affiliates—Samsung C&T and Cheil Industries—that allegedly did not adequately protect the interests of minority shareholders. State prosecutors argued that Lee acted to enhance his personal standing as the de facto leader of the Samsung conglomerate, prioritizing his interests over those of shareholders and investors.
Nevertheless, both Lee and the other executives have denied these allegations. Over the past decade, Lee has faced numerous lawsuits, potential jail time, and criticism from foreign hedge fund Elliott regarding the 2015 merger, which helped solidify his control over the expansive conglomerate after his father suffered a heart attack in 2014. In his final statement, Lee acknowledged the serious concerns surrounding Samsung’s future: “I am fully aware that there are grave concerns about the future of Samsung recently.
The reality that we face is more challenging than ever,” he said, expressing his commitment to overcoming these difficulties and requesting the judge to grant him an opportunity to reinvent Samsung.
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