Latest news with #Samsung Electronics
The Independent
17-07-2025
- Business
- The Independent
South Korean court clears Samsung chairman in merger fraud case
South Korea 's top court has cleared Samsung Electronics Chairman Jay Y. Lee of accounting fraud and stock manipulation, permanently removing a long-running legal risk for the head of the country's biggest company. The Supreme Court upheld an appeals court's ruling dismissing all charges in the case involving an $8 billion merger in 2015. The ruling frees Mr Lee to focus on Samsung's push to catch up in a global race to develop cutting-edge AI chips. In 2024, a lower court had also cleared Mr Lee of the charges relating to a deal between two Samsung affiliates, Samsung C&T and Cheil Industries, which prosecutors said was designed to cement Mr Lee's control of the tech giant. "The Supreme Court ruling clears a layer of legal uncertainty, which could be a long-term positive for Samsung," said NH Investment & Securities senior analyst Ryu Young-ho. "It remains to be seen how directly and proactively he will engage going forward, but if the owner takes a more active role, it could allow management to focus more on long-term initiatives rather than short-term results." Samsung Electronics shares closed up 3.1 per cent, outperforming a near-flat benchmark KOSPI. Analysts attributed the rise to the removal of legal uncertainty surrounding Samsung, as well as investors switching to the company after Goldman Sachs downgraded local rival SK Hynix, sending its shares down as much as 9.5 per cent. The Supreme Court verdict was widely expected, but comes at a critical moment for Mr Lee, who has faced mounting questions about his ability to lead Samsung Electronics – the world's top memory chip and No.2 smartphone maker. Samsung's lawyers said they were "sincerely grateful" to the court for its decision and added in a statement that the ruling confirmed that the merger was legal. For nearly a decade, Mr Lee has faced legal challenges, including those from the merger that paved the way for his succession after his father, Lee Kun-hee, had a heart attack in 2014 that left him in a coma. Billionaire previously pardoned Business lobby groups welcomed the court's decision, framing it as a stabilising development for the South Korean economy. The Korea Enterprises Federation said the ruling removes a major legal burden for Samsung and comes at a time of intensifying global competition in high-tech industries like AI and semiconductors as well as economic pressure from U.S. trade tariffs. "Samsung's role as a leading South Korean company is more critical than ever," the group said in a statement. The group said it hoped Samsung, under Mr Lee's leadership, would step up investment and innovation, helping to create jobs and bolster South Korea's economic rebound. Mr Lee, 57, spent 18 months in jail for bribery in a separate case related to former President Park Geun-hye, but was pardoned by then-President Yoon Suk Yeol, with the Justice Ministry citing a need for the billionaire businessman to help overcome a national economic crisis. The family-run conglomerates, or chaebols, have long been revered for helping transform South Korea into a global economic powerhouse, but also criticised for opaque dealings and for stifling small businesses and start-ups. Earlier in July, Samsung projected a worse-than-expected 56 per cent plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business. Park Ju-gun, head of corporate analysis firm Leaders Index, said Mr Lee now faces dual challenges of tightening his grip on the conglomerate while steering Samsung back to leadership in key sectors. "He must both defend Samsung's core businesses and find new growth engines, all while consolidating his control," Park said.
CNA
17-07-2025
- Business
- CNA
South Korea's top court upholds acquittal of Samsung boss in fraud case
SEOUL: South Korea's highest court on Thursday (Jul 17) upheld the acquittal of Samsung Electronics chief Lee Jae-yong after he was cleared of a slew of charges linked to a controversial merger, ending a years-long legal drama at the tech titan. Prosecutors claimed the deal was designed to seal control of the company for Lee, at a cost to shareholders, accusing the 57-year-old of stock price rigging, breach of trust and accounting fraud. He was originally cleared of the charges at a trial late last year, and that was upheld by an appeal court in February, a decision that was challenged by prosecutors. However, the Supreme Court upheld the original decision on Thursday, bringing an end to the saga. "All appeals were dismissed and the lower court's rulings were upheld," court documents seen by AFP said. The charges related to the 2015 merger between Samsung C&T - a construction and engineering firm - and Cheil Industries. Lee did not appear at the court, but Samsung's legal team welcomed the ruling, saying it "clearly affirms the legality of the merger between Samsung C&T and the accounting practices of Samsung Biologics". "We express our sincere gratitude to the court for its wise and thorough judgement after five years of careful deliberation," they added. Lee was jailed for 18 months in a separate fraud and embezzlement case following a sweeping investigation that also brought down former president Park Geun-hye in 2017. Lee, current executive chairman of Samsung Electronics, the crown jewel of South Korea's sprawling Samsung group, was released on parole in August 2021, having served half his sentence. He received a presidential pardon the following year, then returned to management shortly afterwards, and was officially named executive chairman in October 2022. With the acquittal, experts say Lee is now in a position to take on a more visible leadership role at South Korea's largest conglomerate. "Chairman Lee is likely to resume a more public role, with his leadership becoming more visible through overseas trips, investment announcements and participation in major events," Kim Dae-jong, a professor at Sejong University, told AFP.
CNET
10-07-2025
- CNET
Samsung Plans to Launch Its Tri-Fold Phone This Year, Says Exec
While Samsung has been showing off mobile display concepts with three screens at trade events like CES for several years, it looks like it's finally bringing one to market. The new phone model failed to debut at Samsung's Unpacked event this week in New York. But in a press conference following the launch of its latest foldable phones, Roh Tae-moon, the acting head of Samsung Electronics' Device Experience Division reportedly confirmed that the company plans to launch a tri-fold phone by the end of the year. "We are working hard on a tri-fold smartphone with the goal of launching it at the end of this year," The Korea Times reported Roh as saying. "We are now focusing on perfecting the product and its usability, but we have not decided its name. As the product nears completion, we are planning to make a final decision soon." Roh seems to have confirmed what we know from a leaked UI animation last week, which first suggested Samsung was actively working on a tri-fold phone. Samsung didn't immediately respond to a request for further comment. An animated image from a software build of One UI 8 appears to show what some are dubbing a "Galaxy G Fold" device with three display panels, as reported by Android Authority earlier this month. The screens would be capable of displaying different information or working in unison as one large display. Some websites have gone into overdrive trying to uncover details on what its new device might include and how much it may cost. Phone Arena reported that according to a Korean media report, it could be priced at around $3,000. Chinese phone maker Huawei released a tri-folding phone in February, the Mate XT Ultimate Design, for 19,999 yuan (roughly $2,787 at time of initial publication). More evidence of a tri-folding phone In addition to the leaked animations, Samsung watchers have other evidence to point to suggesting the phone is on its way. "The rumors are indeed pretty strong for a couple of reasons," says Vikas Sharma, a senior director of patent services at Quandary Peak Research. He cites 2021 and 2023 patents the company filed in the US, China, Europe and Korea as well as what the company teased in January. "The images in the patents looked very similar to the image teased in its Galaxy Unpacked event, which indicated a strong likelihood of a future tri-fold phone in the markets where those patents were filed," Sharma says. The Huawei phone, Sharma says, has so far seen demand in China, which could give Samsung another reason to release a competing product. A Samsung tri-folding phone would have the advantage of more Android OS and Samsung apps. A $3,000 price point would likely keep the phone as a niche product, at least until it drops below $2,000, Sharma says. As for what potential buyers could expect from a Samsung tri-folding Galaxy phone, Sharma says that better multitasking capabilities and a bigger screen would bring the experience, "closer to that of a laptop. Additionally, the device will offer the convenience and portability of a mobile phone, easily fitting into a pocket when folding." CNET Principal Writer Katie Collins contributed to this article.
