Prosecutors have called for a five-year prison sentence and a fine of 500 million won ($380,000) for Samsung Electronics Chairman Lee Jae-yong in his appellate trial over allegations of illegal succession of management control. The Seoul High Court is expected to deliver its verdict between late January and early February.
The final hearing, held Nov. 25, centers on Lee and 12 other current and former Samsung executives charged with violations of the Financial Investment Services and Capital Markets Act, among other offenses. The appellate proceedings come nearly 10 months after a lower court acquitted Lee of all charges in February.
Prosecutors argued that the defendants exploited asymmetrical information to benefit Samsung’s leadership, undermining key safeguards designed to prevent abuses of power. “This case damaged the foundation of market integrity and eroded public trust in corporate governance,” they said, adding that the ruling will set a critical precedent for restructuring and accounting practices in conglomerates. They warned that an acquittal could legitimize the use of unlawful methods in corporate mergers.
Lee was indicted in September 2020 for allegedly orchestrating a 2015 merger between Samsung C&T and Cheil Industries to consolidate his control over the Samsung Group. Prosecutors claimed the now-defunct Future Strategy Office implemented the merger as part of a “Project G” governance plan aimed at Lee’s succession. The indictment also included accusations of accounting fraud and unfair transactions.
In February, the lower court acquitted Lee on all 19 charges, citing insufficient evidence. The court found no proof that Samsung executives had spread false information, bribed shareholders, or manipulated stock prices during the merger. It ruled that the prosecution had failed to establish criminal intent or wrongdoing by the defendants.
