According to the court, the CEO of Samsung did not commit fraud during the merger of this company and Chill Industries.
In 2015, two companies, Samsung C&T (a subsidiary of Samsung Electronics) and Chill Industries (a Korean chemical industry company) merged. The merger of the two companies ultimately led to the conviction of Samsung CEO Lee Jae-Yong on charges of financial fraud, breach of trust, and fraud in setting the price of Samsung shares and serving 18 months in prison in 2021.
According to the Korean prosecutors, at that time, the Samsung phone manufacturer had declared the value of the shares of C&D business lower than the actual amount and the value of the shares of Chill Industries more than the actual amount, and this issue caused damage to the shareholders.
Prosecutors also alleged that Samsung Group colluded with Samsung C&T’s largest shareholder, the Korea National Pension Service, to make the merger happen on Samsung’s terms.
Lee Jae-yong needed this merger to succeed his father, Lee Kun-hee, who passed away in 2020. After Lee was indicted, he denied all charges and asked the court to be acquitted so he could lead Samsung.
After Lee’s conviction, prosecutors asked the court to sentence Lee Jae-Yong to five years in prison and pay a $375,000 fine, and Lee served part of the five-year sentence.
Nearly eight years have passed since the merger of the two companies, Samsung announced in an announcement that the CEO, along with three former officials of the company and 10 other people, were acquitted of all charges in this case.
