Latest news with #JayY.Lee
Canada News.Net
2 days ago
- Business
- Canada News.Net
South Korea court ends long legal battle for Samsung chief
SEOUL, South Korea: South Korea's Supreme Court upheld a lower court decision acquitting Samsung Electronics Chairman Jay Y. Lee of charges related to a controversial 2015 merger, ending one of the most high-profile legal battles in the country's corporate history. The ruling clears Lee of accounting fraud and stock manipulation charges tied to the US$8 billion merger between Samsung C&T and Cheil Industries. Prosecutors argued that the deal was engineered to consolidate Lee's control over the conglomerate following his father's incapacitation. The Supreme Court's decision affirms two earlier rulings, including one from an appeals court that found no wrongdoing in the merger. Lee's legal team welcomed the outcome, saying in a statement they were "sincerely grateful" to the court and that the ruling confirmed the merger was legal. The case had cast a long shadow over Lee's leadership at Samsung for nearly a decade, beginning shortly after the 2014 heart attack that left his father, Samsung patriarch Lee Kun-hee, in a coma. The merger laid the foundation for Lee's succession at the helm of the tech empire. While the verdict had been widely anticipated, it arrives at a pivotal time. Samsung is in a race to close the gap in AI chip development, facing fierce global competition in a fast-evolving semiconductor industry. The Supreme Court's decision removes a lingering legal distraction, allowing Lee to focus entirely on steering Samsung through one of its most strategically significant periods. Samsung Electronics shares were modestly higher after the ruling, rising 1.7 percent.
New Straits Times
4 days ago
- Business
- New Straits Times
South Korea's top court clears Samsung Chairman Lee in 2015 merger fraud case
SEOUL: South Korea's top court cleared Samsung Electronics Chairman Jay Y. Lee of accounting fraud and stock manipulation on Thursday, permanently removing a long-running legal risk for the head of the country's biggest company. The Supreme Court upheld an appeals court's ruling dismissing all charges in the case involving a US$8 billion merger in 2015, freeing Lee to focus on Samsung's push to catch up in a global race to develop cutting-edge AI chips. A lower court last year had also cleared Lee of the charges relating to a deal between two Samsung affiliates, Samsung C&T and Cheil Industries, which prosecutors said was designed to cement Lee's control of the tech giant. "The Supreme Court ruling clears a layer of legal uncertainty, which could be a long-term positive for Samsung," said Ryu Young-ho, a senior analyst at NH Investment & Securities. "It remains to be seen how directly and proactively he will engage going forward, but if the owner takes a more active role, it could allow management to focus more on long-term initiatives rather than short-term results," Ryu added. Samsung Electronics shares closed up 3.1 per cent, outperforming a near-flat benchmark KOSPI. Analysts attributed the rise to the removal of legal uncertainty surrounding Samsung, as well as investors switching to the company after Goldman Sachs downgraded local rival SK Hynix, sending its shares down as much as 9.5 per cent. The Supreme Court verdict was widely expected, but comes at a critical moment for Lee, who has faced mounting questions about his ability to lead Samsung Electronics – the world's top memory chip and No. 2 smartphone maker. Samsung's lawyers said they were "sincerely grateful" to the court for its decision and added in a statement that the ruling confirmed that the merger was legal. For nearly a decade, Lee has faced legal challenges, including those from the merger that paved the way for his succession after his father, Lee Kun-hee, had a heart attack in 2014 that left him in a coma. BILLIONAIRE PREVIOUSLY PARDONED Business lobby groups welcomed the court's decision, framing it as a stabilising development for the South Korean economy. The Korea Enterprises Federation said the ruling removes a major legal burden for Samsung and comes at a time of intensifying global competition in high-tech industries like AI and semiconductors as well as economic pressure from US trade tariffs. "Samsung's role as a leading South Korean company is more critical than ever," the group said in a statement. The group said it hoped Samsung, under Lee's leadership, would step up investment and innovation, helping to create jobs and bolster South Korea's economic rebound. Lee, 57, spent 18 months in jail for bribery in a separate case related to former President Park Geun-hye, but was pardoned by then-President Yoon Suk Yeol, with the Justice Ministry citing a need for the billionaire businessman to help overcome a national economic crisis. The family-run conglomerates – or chaebols – have long been revered for helping transform South Korea into a global economic powerhouse, but also criticised for opaque dealings and for stifling small businesses and start-ups. Earlier this month, Samsung projected a worse-than-expected 56 per cent plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business. Park Ju-gun, head of corporate analysis firm Leaders Index, said Lee now faces dual challenges of tightening his grip on the conglomerate while steering Samsung back to leadership in key sectors. "He must both defend Samsung's core businesses and find new growth engines, all while consolidating his control," Park said.
Engadget
5 days ago
- Business
- Engadget
Samsung chairman cleared of fraud by South Korea's top court
South Korea's top court has upheld an appeals court ruling to dismiss all charges in a long-running fraud case against Samsung chairman Jay Y. Lee. The accounting fraud and stock manipulation charges stemmed from a merger of two Samsung subsidiaries in 2015. Prosecutors had accused Lee of manipulating share prices to help clear the way for the merger in an attempt to consolidate his power. In 2024, a court ruled that the prosecutors failed to prove their claims. The case has worked through the appeals process since then. In a statement to Reuters , Samsung's lawyers said the latest ruling confirmed that the merger had been completed legally and added they were "sincerely grateful" to the Supreme Court. Back in 2017, Lee was sentenced to five years in prison after being convicted of bribing public officials with regards to the merger. However, the Supreme Court overturned the decision and ordered a re-trial. As a result of that, Lee was handed a 30-month prison sentence and served 18 months before being paroled. Then-South Korea President Yoon Suk Yeol (who was removed from office this year and recently rearrested over a failed martial law attempt in 2024) later pardoned Lee. While the Supreme Court's ruling had been widely expected, it clears "a layer of legal uncertainty" related to Samsung, one analyst said. It will allow Lee to focus more of his attention on Samsung, which earlier this month projected a 56 percent drop in operating profit for the April-June quarter compared with the same period in 2024. That is due, in large part, to sluggish sales of its AI chips.
The Star
5 days ago
- Business
- The Star
South Korea's top court clears Samsung Chairman Lee in 2015 merger fraud case
FILE PHOTO: Samsung Electronics Chairman Jay Y. Lee leaves a court in Seoul, South Korea, February 3, 2025. REUTERS/Kim Hong-Ji/File Photo SEOUL (Reuters) -South Korea's top court upheld on Thursday a not-guilty verdict for the chairman of Samsung Electronics Jay Y. Lee, backing two lower court rulings clearing him of accounting fraud and stock manipulation related to an $8 billion merger in 2015. The Supreme Court's verdict permanently removes a long-running legal distraction for Lee as Samsung plays catch-up in a global race to develop cutting-edge AI chips. The verdict upheld an appeals court's ruling dismissing all the charges in the case involving the merger a decade ago between two Samsung affiliates, Samsung C&T and Cheil Industries, which prosecutors said was designed to cement Lee's control of the tech giant. A lower court last year had also cleared Lee of the charges. "The Supreme Court ruling clears a layer of legal uncertainty, which could be a long-term positive for Samsung," said Ryu Young-ho, a senior analyst at NH Investment & Securities. "It remains to be seen how directly and proactively he will engage going forward, but if the owner takes a more active role, it could allow management to focus more on long-term initiatives rather than short-term results," Ryu added. Samsung Electronics shares were little changed after the ruling, up 1.7%. The Supreme Court verdict was widely expected, but comes at a critical moment for Lee, who has faced mounting questions about his ability to lead Samsung Electronics - the world's top memory chip and smartphone maker. Samsung's lawyers said they were "sincerely grateful" to the court for its decision and added in a statement that the ruling confirmed that the merger was legal. Business lobby groups welcomed the court's decision, framing it as a stabilising development for the South Korean economy. The Korea Enterprises Federation said the ruling removes a major legal burden for Samsung and comes at a time of intensifying global competition in high-tech industries like AI and semiconductors as well as economic pressure from U.S. trade tariffs. "Samsung's role as a leading South Korean company is more critical than ever," the group said in a statement. The group said it hoped Samsung, under Lee's leadership, would step up investment and innovation, helping to create jobs and bolster South Korea's economic rebound. For nearly a decade, Lee has faced legal challenges, including those from the merger that paved the way for his succession after his father, Lee Kun-hee, had a heart attack in 2014 that left him in a coma. Park Ju-gun, head of corporate analysis firm Leaders Index, said Lee now faces dual challenges of tightening his grip on the conglomerate while steering Samsung back to leadership in key sectors. "He must both defend Samsung's core businesses and find new growth engines, all while consolidating his control," Park said. (Reporting by Joyce Lee and Heekyong Yang; Additional reporting by Hyunjoo JinEditing by Ed Davies and Saad Sayeed)
Malaysian Reserve
5 days ago
- Business
- Malaysian Reserve
Samsung billionaire Lee's acquittal upheld by Korea's top court
SAMSUNG Electronics Co. Executive Chairman Jay Y. Lee was cleared of all charges related to accounting fraud and stock manipulation by South Korea's Supreme Court, marking a major legal victory for the billionaire head of the world's largest electronics empire. The top court on Thursday upheld a Seoul High Court ruling that acquitted Lee and other Samsung officials of all 19 charges stemming from the 2015 merger of Samsung C&T Corp. and Cheil Industries Inc. Prosecutors alleged the deal helped Lee cement his control over the conglomerate. The decision ends a years-long legal saga that had cast a shadow over the leadership of South Korea's biggest conglomerate. South Korean prosecutors in 2023 sought a five-year prison sentence along with a 500 million won ($362,000) fine for Lee. However, a Seoul district court in February 2024 ruled in Lee's favor. A year later, the Seoul High Court dismissed the prosecution's appeal and upheld the lower court's decision, clearing Lee of all charges. The case has been ongoing since 2020. –BLOOMBERG
