Prosecutors Mull Appeal in Lee Jae-yong's 'Not Guilty' Verdict on Unfair Merger... "Significant Differences in Views"

Prosecution: "We Will Thoroughly Examine the Reasons for Rejecting Prosecution's Claims"
Appeal Submission Deadline on the 13th

Prosecutors are expected to decide whether to appeal after the Lunar New Year holiday regarding Samsung Electronics Chairman Lee Jae-yong, who was acquitted in the first trial on charges of 'unfair merger.' Although they plan to review the court ruling before deciding on the appeal, it appears that they are leaning toward filing an appeal.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

A Seoul Central District Prosecutors' Office official said on the 7th, "Since there are significant differences in judgment and views from the first trial, we will closely examine those points and review whether to appeal."

He added, "The prosecution's claims were all rejected, and there are aspects of the logic that are not convincing. We need to review where the differences lie and thoroughly verify the reasons for rejecting the claims to carefully consider the matter."

He continued, "There is a Supreme Court ruling related to the succession process that has been finalized. Since we believe there may be differences in the judgment of the facts, we will also closely review that part to decide whether to appeal," he added.

Earlier, the Supreme Court Grand Bench recognized in the 2019 Park Geun-hye administration's state affairs manipulation appeal trial that Lee had bribed former President Park in exchange for assistance with his succession work.

Regarding the court's refusal to admit the evidentiary value of key evidence secured by the prosecution, the official said, "There were legal disputes during the trial, and although we sufficiently explained that there was no illegality, some parts were rejected, so we will carefully review them."

On the 5th, the Seoul Central District Court Criminal Division 25-2 (Presiding Judge Park Jeong-je, Judges Ji Gwi-yeon and Park Jeong-gil) acquitted Lee, who was indicted on charges including unfair trading and market manipulation under the Capital Markets Act and breach of duty. All former and current Samsung Group executives and employees who were tried for various misconduct related to the management succession were also acquitted.

The court ruled that the merger of the two companies could not be considered unfair and that it could not be concluded that it was intended for Lee's management succession or strengthening control. It also found no evidence to recognize that the merger, which was disadvantageous to Samsung C&T and its shareholders, caused property damage by losing opportunities to increase corporate and shareholder value.

The appeal must be filed within seven days from the day after the first trial verdict, so the deadline for filing an appeal is the 12th of this month. However, since that day is a substitute holiday, the submission deadline has been extended by one day.

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