(yunhap news)
The trial of Samsung Electronics’ vice chairman Lee Jae-yong (52), who was handed over to the trial due to the suspicion of an illegal merger with Samsung C&T, resumed five months after it was postponed due to the aftermath of a novel coronavirus infection (Corona 19). The prosecution and attorney continued a sharp battle over whether the merger of Samsung C&T was illegal.
Part 25 of the Seoul Central District Court’s Criminal Agreement (Presiding Judge Park Jeong-je) announced the preparation date for the second trial against Lee and 10 former and current executives who were charged with fraudulent transactions under the Capital Markets Act, market price control, and business mandate Opened.
The case began when the Securities and Futures Committee, under the Financial Services Commission, accused Samsung Biologics of fraudulent accounting to the prosecution in November 2018. Since then, the prosecution’s investigation has expanded to the merger of Samsung C&T and Cheil Industries in 2015 and the succession of the management rights of Vice Chairman Lee.
At the time of the merger, Cheil Industries merged under the condition of exchanging 1 share of its own company and 3 shares of Samsung C&T. After the merger, Vice Chairman Lee, who owned a 23.2% stake in Cheil Industries, reinforced the group’s control by securing an integrated stake in Samsung C&T.
During the process of Cheil Industries’ merger with Samsung C&T, △dissemination of false information △concealment of important information △publication of false positives △Illegal lobbying to secure voting rights for the National Pension System I think there was.
On that day, the prosecution said, “The decision to merge was not Samsung C&T and Cheil Industries, which are parties to the merger, but Vice Chairman Lee and Mijeon Office. We have finished preparing for the contract.”
On the other hand, Vice Chairman Lee’s attorney refuted, “The merger of the two companies was not related to the succession of management rights, and the view that Cheil Industries was overvalued at the time was dominant.” It also argued that “the merger of the two companies resulted in stabilization of management rights.”
A lawyer said, “Another aspect of the reorganization of the governance structure and securing of management stability is the securing of management stability, and overseas shareholders who actually opposed the merger themselves also agreed to the merger.” There was a purpose to do it.”
Vice-Chairman Lee is serving in a Seoul detention center after being sentenced to two years and six months in prison at a repatriation trial for the destruction of the Gukjeong Nongdan case in January this year. Vice-Chairman Lee did not appear on this day as the accused is not obligated to attend the trial.