Samsung boss Lee J-Yong approves fraud allegations by Supreme Court of South Korea

 

Samsung Executive Chairman, Li J-Yong, has been officially approved by the Supreme Court of South Korea for allegations of fraud, a high-profile legal battle has been concluded that has run for almost a decade. The case focused around a controversial 2015 merger and was significant implications for Samsung and South Korea's corporate sector. Lee, who is the grandson of the Samsung founder and the real leader of the tech veteran since 2014, was accused of using stock manipulation and fraud accounting, which were to gain more control of the group. The allegations kept one of the world's largest technology companies under a thorough investigation. On Thursday, in Seoul, the Supreme Court upheld Lee's previous people, confirming that the merger between Samsung C&T and Samsung Biologics was legal. Samsung's legal team welcomed the verdict, saying, "The court has clearly confirmed through its final verdict that the merger and accounting treatment were valid." The prosecutors had claimed that Lee and his team manipulated the evaluation of Samsung Biological through unfair accounting. He argued that this inflated value enabled Lee to secure a large stake in the merged unit, effectively solid his succession within the Samsung Empire. According to the prosecution, the merger of 2015 was strategically designed to transfer control from Lee's father, late Lee Kun-Hee, who died in 2014 and died in 2020. The case had become a symbol of widespread debate about groups owned by a powerful family of South Korea.

Lee was earlier arrested in a separate case in 2017, which included bribery of former President Park Gune-Hai's close aide. That incident also attracted the attention of both domestic and internationally in its efforts to secure leadership in Samsung. Over the years, Lee survived a brief jail sentence, but was released early, including an example, where he received a presidential forgiveness. At the same time, South Korean officials cited the need for stable leadership in Samsung to support the country's economy during the Kovid -19 recovery phase. In 2024, a lower court acquitted all the allegations bound by the merger of $ 8 billion between Samsung C&T and Chell Industries. That decision was retained by a High Court, and now by the country's apex court, a long -running legal saga was effectively terminated. Despite these legal distractions, Samsung is facing increasing pressure in the global technology market, with a decline in sales in smartphones and semiconductor chips. Lee admitted these challenges in the presence of a court last year, saying, "The reality in front of Samsung is more difficult than ever, but I will go away and take one step forward." External factors, including the American tariff during the presidential post of Donald Trump, have also taken risks for Samsung's export-heavy trade model. Many people from South Korea's business community believe that this final decision will bring very important clarity and stability under the company's leadership. The Federation of Korean Industries welcomed the Supreme Court's verdict, stating that it would be able to take fast decisions at the top level of Samsung, eventually benefiting the South Korea's economy amidst the ongoing global trade tensions.