Latest news with #JayYLee
Globe and Mail
2 days ago
- Business
- Globe and Mail
South Korea wins appeal in dispute with U.S. hedge fund Elliott over Samsung merger case
South Korea on Thursday won its latest appeal in its dispute with U.S. hedge fund Elliott over the 2015 merger of two affiliates of Samsung Electronics Co. Ltd. SSNLF, shortly after the electronics group's chairman Jay Y. Lee was cleared by South Korea's top court. The South Korean government was ordered to pay Elliott around US$100-million by the Netherlands-based Permanent Court of Arbitration in 2023. Elliott had sued over the role played by South Korea's National Pension Service in approving the US$8-billion merger between Samsung C&T, in which Elliott was a minority stakeholder, and Cheil Industries. South Korea sought to challenge the tribunal's decision at London's High Court, arguing the tribunal did not have jurisdiction under a free-trade agreement with the U.S., but its case was rejected last year. The Court of Appeal, however, allowed South Korea's appeal and sent the case back to the High Court, to decide the challenge to the arbitration tribunal's jurisdiction. Its ruling came hours after Lee was ultimately cleared of accounting fraud and stock manipulation over the 2015 merger between Samsung C&T and Cheil Industries. South Korea's Supreme Court upheld the dismissal of prosecutors' appeal against a Seoul court's 2024 decision to clear Lee, removing a long-running legal risk for the head of the country's biggest company Samsung Electronics.
Reuters
3 days ago
- Business
- Reuters
South Korea's top court clears Samsung Chairman Lee in 2015 merger fraud case
SEOUL, July 17 (Reuters) - South Korea's top court cleared Samsung Electronics ( opens new tab 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 an $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 ( opens new tab 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%, outperforming a near-flat benchmark KOSPI (.KS11), opens new tab. 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 ( opens new tab, sending its shares down as much as 9.5%. 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. 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. 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% 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.
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Business Standard
3 days ago
- Business
- Business Standard
South Korea wins appeal in legal dispute with Elliott over Samsung merger
South Korea won its latest appeal on Thursday in its ongoing dispute with US hedge fund Elliott Management regarding the 2015 merger of two Samsung affiliates. The decision came shortly after South Korea's Supreme Court acquitted Samsung Electronics Chairman Jay Y Lee in a related case, according to Reuters. In 2023, the Netherlands-based Permanent Court of Arbitration had directed the South Korean government to pay approximately $100 million in damages to Elliott. The hedge fund had initiated legal proceedings, contesting the role of South Korea's National Pension Service (NPS) in approving the $8 billion merger between Samsung C&T—where Elliott was a minority shareholder—and Cheil Industries. South Korea had attempted to overturn the tribunal's ruling at the High Court in London, arguing that the arbitration panel lacked jurisdiction under the free trade agreement with the US. The challenge was dismissed last year. However, the Court of Appeal has now allowed South Korea's appeal and referred the case back to the High Court to assess the question of the arbitration tribunal's jurisdiction. South Korea's top court clears Samsung Chairman in 2015 merger fraud case The appellate court ruling followed a few hours after Samsung's Chairman Jay Y Lee was acquitted of charges related to the 2015 merger between Samsung C&T and Cheil Industries. South Korea's Supreme Court upheld a 2024 Seoul court decision that cleared Lee of accounting fraud and stock manipulation, eliminating a long-standing legal threat for the executive of the country's biggest company, Samsung Electronics. The lower court had previously dismissed the prosecution's allegations that the merger was orchestrated to consolidate Lee's control over the conglomerate. Prosecutors had appealed the decision, which the Supreme Court has now confirmed. While widely anticipated, the ruling comes at a pivotal time for Lee, who has faced persistent scrutiny regarding his capacity to lead Samsung Electronics—currently the world's largest memory chip maker and the second-largest smartphone manufacturer. Lee's legal troubles have stretched nearly a decade, originating after the 2014 heart attack of his father, Lee Kun-hee, which left him in a coma and set the stage for Jay Y Lee's eventual leadership. Business lobby groups welcome court's decision South Korean business associations have welcomed the Supreme Court's ruling. The Korea Enterprises Federation stated that the verdict lifts a significant legal burden from Samsung, especially amid intensifying global competition in high-tech sectors such as AI and semiconductors, as well as trade-related economic challenges from the US. Lee, now 57, had previously served 18 months in prison for a separate bribery conviction connected to former President Park Geun-hye. He was later pardoned by President Yoon Suk Yeol, with the Justice Ministry citing the need for Lee to contribute to resolving the country's economic difficulties.
Yahoo
3 days ago
- Business
- Yahoo
South Korea wins UK appeal over arbitration ruling in Samsung merger case
LONDON (Reuters) -South Korea on Thursday won its latest appeal in its dispute with U.S. hedge fund Elliott over the 2015 merger of two affiliates of Samsung, shortly after the electronics group's Chairman Jay Y. Lee was cleared by South Korea's top court. The South Korean government was ordered to pay Elliott around $100 million by the Netherlands-based Permanent Court of Arbitration in 2023. Elliott had sued over the role played by South Korea's National Pension Service in approving the $8 billion merger between Samsung C&T, in which Elliott was a minority stakeholder, and Cheil Industries. South Korea sought to challenge the tribunal's decision at London's High Court, arguing the tribunal did not have jurisdiction under a free trade agreement with the U.S., but its case was rejected last year. The Court of Appeal, however, allowed South Korea's appeal and sent the case back to the High Court, to decide the challenge to the arbitration tribunal's jurisdiction. Its ruling came hours after Lee was ultimately cleared of accounting fraud and stock manipulation over the 2015 merger between Samsung C&T and Cheil Industries. South Korea's Supreme Court upheld the dismissal of prosecutors' appeal against a Seoul court's 2024 decision to clear Lee, removing a long-running legal risk for the head of the country's biggest company Samsung Electronics. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
3 days ago
- Business
- CNA
South Korea wins UK appeal over arbitration ruling in Samsung merger case
LONDON :South Korea on Thursday won its latest appeal in its dispute with U.S. hedge fund Elliott over the 2015 merger of two affiliates of Samsung, shortly after the electronics group's Chairman Jay Y. Lee was cleared by South Korea's top court. The South Korean government was ordered to pay Elliott around $100 million by the Netherlands-based Permanent Court of Arbitration in 2023. Elliott had sued over the role played by South Korea's National Pension Service in approving the $8 billion merger between Samsung C&T, in which Elliott was a minority stakeholder, and Cheil Industries. South Korea sought to challenge the tribunal's decision at London's High Court, arguing the tribunal did not have jurisdiction under a free trade agreement with the U.S., but its case was rejected last year. The Court of Appeal, however, allowed South Korea's appeal and sent the case back to the High Court, to decide the challenge to the arbitration tribunal's jurisdiction. Its ruling came hours after Lee was ultimately cleared of accounting fraud and stock manipulation over the 2015 merger between Samsung C&T and Cheil Industries.
