Prosecution appeals Samsung chief Lee Jae-yong’s acquittal

Prosecutors on Thursday appealed a recent court acquittal of Samsung Electronics Chairman Lee Jae-yong in a controversial Samsung affiliate merger case, sources said.

On Monday, the Seoul Central District Court delivered a not-guilty sentence for Lee, who was charged over alleged engagement in market irregularities over the course of the controversial merger of two Samsung affiliates, Cheil Industries and Samsung C&T Corp, in 2015.

In response, the Seoul Central District Prosecutors Office on Thursday filed an appeal against the ruling, claiming the merger was aimed at solidifying Lee's managerial control of the firm at a lower cost, according to judicial sources.

The prosecution had demanded a five-year prison sentence for the chief of South Korea's largest conglomerate, reports Yonhap news agency. The merger was seen as crucial to Lee's succession as the heir of the family-controlled firm, as his father, Lee Kun-hee, had suffered a heart attack the previous year.

Meanwhile, Jae-yong’s acquittal is expected to strengthen his leadership to overcome mounting challenges and accelerate decision-making within South Korea's largest conglomerate. The long-awaited acquittal marks the resolution of legal uncertainties that Lee has faced for nine years since he was involved in a nationwide power abuse scandal under the administration of former President Park Geun-hye, providing stability to Samsung.

This development is seen as crucial for Samsung in the face of geopolitical risks, such as the US-China conflict and the prolonged Russia-Ukraine war, along with a protracted economic slowdown, high inflation and interest rates.