Lee Jae-yong, 8 Hours 30 Minutes of 'Marathon Trial'... Denies Most Charges (Update 2)

Lee Jae-yong, Vice Chairman of Samsung Electronics, who is under prosecution investigation for allegations of unfair succession of management rights related to the merger of the former Samsung C&T and Cheil Industries, as well as accounting fraud allegations involving Samsung Biologics, is entering the courtroom to attend the warrant hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 8th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy reporters Seongpil Cho and Gimin Lee] The pre-trial detention hearing (warrant review) for Samsung Electronics Vice Chairman Lee Jae-yong concluded after 8 hours and 30 minutes.

Lee’s legal team reportedly denied most of the charges related to the Samsung merger and succession allegations.

Given the unusually long duration of the warrant review, the decision on whether to detain Lee and others is expected to be made in the early hours of the following day.

The warrant review for Lee, presided over by Judge Won Jeong-sook of the Seoul Central District Court’s warrant division, began at 10:30 a.m. on the 8th and ended around 7 p.m.

Lee’s side denied charges of violating the Capital Markets Act (fraudulent trading and market manipulation) and the External Audit Act (accounting fraud), leading to prolonged exchanges between the prosecution and defense during the hearing.

The warrant review started with allegations of fraudulent trading and market manipulation, followed by accounting fraud suspicions.

Prosecutors including Deputy Chief Prosecutor Lee Bok-hyun of the Economic Crime Division at Seoul Central District Prosecutors’ Office, Deputy Chief Prosecutor Choi Jae-hoon, and Chief Prosecutor Kim Young-chul of Uijeongbu District Prosecutors’ Office read out a 150-page warrant application, arguing the necessity of detention, after which Lee’s defense presented rebuttals.

The prosecution emphasized concerns over Lee’s potential evidence tampering related to the overall succession process as grounds for detention. Evidence tampering is a key factor in deciding detention.

Prosecutors argued that since Lee denied any knowledge or orders during two summonses late last month, there is a risk he might attempt to tamper with evidence if not detained.

Even before the warrant review, the prosecution expressed confidence in meeting the essential requirement of “substantiating charges” for issuing a detention warrant.

The prosecution’s position is that the 2015 merger between Samsung C&T and Cheil Industries was a succession maneuver by Lee, during which illegal market manipulation and accounting fraud were orchestrated by the group’s top executives.

Last August, the Supreme Court’s full bench ruled in the state corruption case that the succession process involved improper solicitations and recognized all bribery charges, which is favorable to the prosecution.

Kim Jong-jung (64), former head of Samsung's MIS Strategy Team (President), who is suspected of illegal management succession involving Lee Jae-yong, Vice Chairman of Samsung Electronics, is attending the warrant hearing on the morning of the 8th at the Seoul Central District Court in Seocho-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

On the other hand, Lee’s defense argued for non-detention, claiming that most necessary evidence has been collected over the 19-month investigation, eliminating concerns about evidence tampering.

It remains crucial how much the court will acknowledge Lee’s alleged crimes involving various illegal acts before and after the merger to secure stable succession of management rights.

The warrant review was briefly adjourned for a one-hour lunch break around 1 p.m. Before the break, disputes centered on allegations of fraudulent trading and market manipulation. In the afternoon, the focus shifted mainly to disputes over accounting fraud suspicions.

Lee’s questioning continued even after the recess at 4:30 p.m. Former Chief of Staff Choi and former Team Leader Kim reportedly submitted rebuttal statements afterward.

Among them, former Team Leader Kim was added with perjury charges for testifying as a witness in former President Park Geun-hye’s 2017 trial, stating that the Samsung C&T and Cheil Industries merger was proposed by Cheil Industries and unrelated to Lee’s succession, and he also submitted opinions related to this.

After the warrant review, Lee and others were transferred to Seoul Detention Center to await the decision.

This content was produced with the assistance of AI translation services.