SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung’s boss now on trial for accounting fraud, manipulation charges


Last updated: October 22nd, 2020 at 12:31 UTC+02:00

The legal troubles of Samsung vice chairman and de facto head Lee Jae-yong seem to have no end. Over the past year, his role in a highly controversial merger between Chiel Industries and Samsung C&T has been probed in addition to alleged accounting fraud at Samsung Biologistics.

It’s alleged that the merger enabled the Lee family to cement their control over the Samsung Group. Following the probe, Lee was charged with accounting fraud and stock manipulation. The trial on these charges has begun today.

Samsung heir faces charges of fraud and manipulation

The trial proceedings began today in the Seoul Central District Court. The prosecutors and attorneys met to discuss the trial schedule and present their positions on the case. Lee was not in attendance.

The prosecutors allege that Lee was involved in the manipulation of stock prices of Cheil Industries and Samsung C&T when the companies were being merged in 2015. It’s also alleged that he approved accounting fraud at Samsung Biologistics, a subsidiary of Samsung C&T, in order to increase his control over the conglomerate.

At the hearing today, attorneys for Lee and other Samsung executives maintained that the merger between the two companies was normal management activity. They also denied charges of accounting fraud at Samsung Biologistics.

The prosecution wants the trial to proceed rapidly. They have requested the court to conduct two hearings a week, a request that the court has yet to make a decision on. The defense team have asked the court for three months to review the 190,000 pages of documents that the prosecutors have prepared. They have been granted time till January 14, 2021.

Via General Lee Jae-yong
Load 0 comments

You might also like

Investors worry Samsung’s chip division has lost its ability to innovate

Market watchers and investors are worried that Samsung Electronics is losing its grip on the semiconductor market. More so, Samsung is reportedly losing ground due to internal issues rather than external factors driven by the competition. Critics worry that the Korean tech giant, particularly its chipset division, has lost its ability to innovate under Lee […]

  • By Mihai Matei
  • 1 week ago

South Korea’s Prime Minister to recommend pardon for Samsung boss

Business leaders in South Korea have consistently called on the government to pardon Samsung Group chief Lee Jae-yong. They believe that it’s important for Lee to return to the conglomerate’s leadership fully so that Samsung can play a more significant role in the chip market. Despite being out on parole, Lee Jae-yong still has to […]

  • By Adnan Farooqui
  • 2 weeks ago

Korean business leaders fight for Lee Jae-yong to be pardoned next month

South Korean business leaders want Samsung heir Lee Jae-yong to be pardoned and free from all post-prison restrictions. The Samsung leader was sentenced to 2 and a half years in prison and released on parole in August last year, but whether or not President Yoon Suk-yeol will grant a full pardon remains unknown. Samsung’s de-facto […]

  • By Mihai Matei
  • 3 weeks ago

Samsung chief visits Japan to strengthen business ties and supply chains

Samsung de facto leader Lee Jae-yong reportedly met with a couple of high-profile Japanese business leaders earlier this week. Although the purpose of this meeting remains uncofirmed, it is believed that Lee’s goal is to strengthen business ties with Japan. Reports say that Samsung’s leader had dinner with Masazuka Tokura on Monday. Mr. Tokura is […]

  • By Mihai Matei
  • 1 month ago

Samsung’s Lee discusses chip cooperation with Dutch PM Rutte

On his business trip to Europe, Samsung Electronics Vice Chairman, Lee Jae-Yong, met with the Dutch PM Mark Rutte at the latter’s office in Hague, the Netherlands. As reported by Samsung (via Yonhap News Agency), Lee talked about the possibilities of expanding chip cooperation in the semiconductor industry and solving global supply chain issues. Lee specifically […]

  • By Sagar Naresh
  • 2 months ago

Pardon for Samsung heir termed crucial for business growth

Calls for Samsung Group chief Lee Jae-yong to be pardoned continue to grow as the conglomerate gears up to face challenges in the global chip market. Lee Chan-hee, the chairman of Samsung’s ethics committee, has called on the government to pardon the Samsung heir. The leadership vacancy caused by his conviction is leaving Samsung in […]

  • By Adnan Farooqui
  • 2 months ago