Judicial Risk Turn Lee Jae-yong and Samsung Likely to Expand Steps...Focus on Overseas Business Trip 여부

Broadened Freedom of Movement Following First Trial Acquittal
Focused Solely on Domestic Activities This Year Due to Trial Impact
Meeting with Altman Also Fell Through
Possible Overseas Business Trip This or Next Month

Samsung Electronics Chairman Lee Jae-yong broke free from the shackles of 'judicial risk' on the 5th as the court ruled that there were no illegal acts in the process of succession and acquitted him. This is expected to give momentum to Lee's future management activities. In the business community, there is growing interest and speculation that Lee, who had so far remained within Korea, will expand his scope and step overseas.

Samsung Electronics Chairman Lee Jae-yong is leaving the courtroom after being acquitted in the first trial related to accounting fraud and unfair merger at the Seoul Central District Court in Seocho-gu, Seoul on the 5th. Photo by Kang Jin-hyung aymsdream@

On the day, Lee was acquitted by the Seoul Central District Court Criminal Division 25-2 (Presiding Judge Park Jeong-je, Ji Gwi-yeon, Park Jeong-gil) on charges including unfair trading and market manipulation under the Capital Markets Act, and breach of duty.

The court stated, "The merger of the two companies was not solely for Lee's succession or strengthening control, and overall it cannot be deemed unfair. There is no evidence to prove that the unfair ratio caused damage to shareholders," thus ruling in Lee's favor. All other 13 defendants, including former Samsung Group Future Strategy Office (FSO) chief Choi Ji-sung, former FSO strategy team leader Kim Jong-jung, and former FSO deputy chief Jang Chung-gi, who were indicted alongside Lee, were also acquitted.

Although the prosecution is likely to appeal the acquittal, potentially leading to a second trial, Lee will be free from the burden of trial for the time being. Meanwhile, Lee is expected to have more freedom of movement. In particular, there is growing anticipation that he may undertake overseas business trips this month or next.

Earlier this year, Lee limited his management activities to within Korea and did not make any overseas trips. He did not attend the International Consumer Electronics Show (CES 2024) held in Las Vegas, USA, from January 7 to 10, nor the World Economic Forum (Davos Forum) held in Davos, Switzerland, from January 15 to 19. Instead, on January 10, Lee visited Samsung Research in Umyeon-dong, Seocho-gu, Seoul, to review trends and countermeasures for next-generation communication technologies, including 6G. Then, on January 16, he held a meeting with 15 '2024 Samsung Masters' at the Seocho headquarters to communicate.

The shackles of judicial risk also made meetings with key figures difficult. On January 26, Lee was unable to meet Sam Altman, CEO of OpenAI, who visited Korea. Altman had initially requested a meeting with Lee, but it was canceled due to scheduling uncertainties ahead of Lee's first trial verdict. Instead, Altman toured Samsung Electronics' semiconductor plant in Pyeongtaek, Gyeonggi Province, and met with Samsung Electronics Semiconductor Division (DS) President Kyung Kye-hyun.

For the time being, Lee is expected to focus on domestic issues of the group while considering overseas business trips. Such trips are likely to lead to large-scale investment decisions or mergers and acquisitions (M&A). Meanwhile, Lee Bok-hyun, Governor of the Financial Supervisory Service, who led the investigation and indictment of Lee during his tenure as chief prosecutor at the Seoul Central District Prosecutors' Office, said at a briefing held before the trial, "Considering the status of Samsung Electronics and Samsung Group in the international economy, this procedure could serve as a turning point to conclude the so-called judicial risk."

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