[Breaking] Court Acquits Samsung Electronics Chairman Lee Jae-yong and Others

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In the first trial verdict for Samsung Electronics Chairman Lee Jae-yong and others, who were indicted for violations of the Capital Markets Act and the External Audit Act during the merger process of Samsung C&T and Cheil Industries, the Seoul Central District Court Criminal Division 25-2 (Presiding Judges Park Jeong-je, Ji Gwi-yeon, Park Jeong-gil) acquitted Lee and the others on the 5th.

The court stated, "This merger case was decided to proceed based on the business necessity recognized through consultations among Cheil Industries, Samsung C&T, and Samsung Group's Future Strategy Office from March to May 2015, as well as the merger task force (TF) of both companies reviewing the necessity of the merger. Therefore, it cannot be concluded that the sole purpose of this case was the strengthening of management rights by defendant Lee Jae-yong and the succession of Samsung Group. It is reasonable to view that Samsung C&T's business objectives were also a purpose of this merger."

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