Azernews.Az

By Alimat Aliyeva

In the South Korean Court of Appeal, prosecutors are seeking punishment for Samsung Electronics President Lee Jae-yong on charges of stock manipulation and fraud related to the merger of subsidiaries, Azernews reports.

The South Korean prosecutor's office has requested a five-year prison sentence for Lee Jae-yong as part of the appeal in the controversial case surrounding the merger of Samsung affiliates. According to the prosecution, the merger helped solidify Lee's control over the corporation, and they argue that it was orchestrated through illegal means, including stock price manipulation.

In February, the Seoul Central District Court acquitted Lee Jae-yong of charges of accounting fraud and stock manipulation, but the prosecutor's office filed an appeal, asserting that the initial ruling was flawed. Prosecutors argue that Lee's actions harmed shareholders, undermined corporate transparency, and violated South Korea's corporate governance laws.

It is also worth noting that Lee Jae-yong has faced multiple legal challenges over the years. He was previously convicted in a major corruption scandal involving former President Park Geun-hye and was sentenced to prison in 2017. However, in 2022, Lee received a special presidential pardon, which allowed him to return to his leadership role at Samsung Electronics, one of the largest and most influential companies in the world.

The outcome of this appeal could have significant ramifications not only for Lee's future but also for the broader South Korean corporate landscape, which has been grappling with issues of transparency, governance, and the concentration of power within family-run conglomerates known as chaebols. The case has also attracted international attention, as Samsung is a key player in global markets, particularly in the semiconductor, electronics, and telecommunications sectors. The decision could have wider implications for corporate governance practices and legal accountability in South Korea's corporate world.