Seoul: Prosecutors on Monday demanded a five-year prison sentence for Samsung Electronics Co. Chairman Lee Jae-yong in an appeal against a court decision that acquitted the chairman over the controversial 2015 merger of two Samsung affiliates.According to Yonhap News Agency, the prosecution also requested a fine of 500 million won (US$356,552) for Lee during the final hearing at the Seoul High Court. Lee was indicted in September 2020 on charges of stock price rigging, breach of duty, and accounting fraud related to the 2015 merger of Cheil Industries Inc. and Samsung C and T Corp.The merger, which involved offering three Samsung C and T shares for one Cheil share, enabled Lee to strengthen his control over Samsung C and T, the de facto holding company for the Samsung Group, via his 23.2 percent stake in Cheil. Prosecutors alleged that the group manipulated the stock market to artificially inflate Cheil's stock prices while depressing Samsung C and T's through unfair practices, including disseminating fal se market information and lobbying the National Pension Service, a major Samsung C and T shareholder, to support the merger.The prosecution argued that Lee's actions compromised "the justice of our economy and the constitutional values that make up the foundation of the capital market," accusing him of deceiving shareholders by presenting the merger as being in the national interest. They further warned that acquitting Lee could set a precedent allowing dominant shareholders to pursue mergers through "illegal and expedient" means.In February, the Seoul Central District Court acquitted Lee of all 19 charges, ruling that his succession as group chairman was not the primary objective of the merger and found no evidence of financial loss to shareholders. The prosecution has since appealed this decision.In his defense, Lee reiterated his lack of intent to harm shareholders financially or mislead investors for personal benefit. He asserted his belief that the merger was advantageous for both companies' future s and pleaded for the opportunity to focus on overcoming Samsung's current economic challenges and advancing the company.Lee acknowledged the concerns regarding Samsung's future and assured stakeholders of his commitment to navigating the difficult economic landscape, citing recent declines in Samsung Electronics' shares due to uncertainties and perceived innovation gaps in AI chip technology.The appeals court is scheduled to deliver its final verdict at 2 p.m. on Feb. 3.
- October 12, 2026
