The South Court of South Korea finally justified the chairman of the Samsung Electronics by Jay Lee in the case of the alleged fraud and manipulations with shares during the merger of two affiliated companies in 2015. This decision eliminates one of the last legal risks that accompanied whether for almost ten years.
It was about the deal between Samsung C& T and Cheil Industries in the amount of about $ 8 billion, which the prosecutor’s office considered an attempt to strengthen Lee’s control over the technological giant after his father’s illness. However, the court of appeal previously rejected all charges, and now the Supreme Court has confirmed this verdict.
The acquittal was a positive signal for investors. Samsung Electronics shares increased by 3.1%, against the background of weakening the positions of the competitor SK Hynix, whose papers fell by almost 10% after a decrease in the forecast from Goldman Sachs.
South Korean business associations supported the court decision, noting that it will help stabilize the economic situation and eliminate the uncertainty around the country’s largest company. Samsung will now be able to focus on investments, innovation and job creation, especially against the background of international competition in the field of AI and semiconductors.
