5-year jail for Samsung boss on fraud, stock manipulation charges demanded

South Korean prosecutors demanded a 5-year jail for Samsung Boss Lee Jae-yong on charges of fraud, and stock price rigging connected to the controversial 2015 merger of two Samsung affiliates.

Samsung’s Lee Jae-yong has been charged with stock price rigging, breach of duty, and accounting fraud in the course of the controversial 2015 merger of two Samsung affiliates, Cheil Industries Inc. and Samsung C&T.

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During the final hearing held at the Seoul Central District Court, prosecutors also requested a fine of 500 million won ($386,817) for Samsung Chairman Lee. Notably, the merger, where three Samsung C&T shares were offered for one Cheil share, helped Lee tighten his control of Samsung C&T through his 23.2 percent stake in Cheil.

Lee is also accused of involvement in the suspected accounting fraud at Samsung Biologics, a subsidiary of Cheil Industries. Prosecutors said Lee was in the position of ultimate decision-maker and the final beneficiary of the alleged malpractice as they demanded the sentence for Lee.

A ruling is widely expected in early 2024 at the earliest.

// Reuters