Latest news with #stockmanipulation
Reuters
17-07-2025
- Business
- Reuters
South Korea's top court clears Samsung Chairman Lee in 2015 merger fraud case
SEOUL, July 17 (Reuters) - South Korea's top court cleared Samsung Electronics ( opens new tab Chairman Jay Y. Lee of accounting fraud and stock manipulation on Thursday, 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, freeing Lee to focus on Samsung's push to catch up in a global race to develop cutting-edge AI chips. A lower court last year had also cleared Lee of the charges relating to a deal between two Samsung affiliates, Samsung C&T ( opens new tab and Cheil Industries, which prosecutors said was designed to cement 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 Ryu Young-ho, a senior analyst at NH Investment & Securities. "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," Ryu added. Samsung Electronics shares closed up 3.1%, outperforming a near-flat benchmark KOSPI (.KS11), opens new tab. 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 ( opens new tab, sending its shares down as much as 9.5%. The Supreme Court verdict was widely expected, but comes at a critical moment for 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, 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. 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 Lee's leadership, would step up investment and innovation, helping to create jobs and bolster South Korea's economic rebound. 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 this month, Samsung projected a worse-than-expected 56% 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 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.
Phone Arena
17-07-2025
- Business
- Phone Arena
Samsung's boss escapes prison, but can he escape the market slump?
Samsung's long-running legal battle over its chairman has finally come to an end. South Korea's Supreme Court has cleared Jay Y. Lee of all charges related to accounting fraud and stock manipulation, eliminating a cloud that has hovered over Samsung for nearly a case centered on a controversial $8 billion merger in 2015 between Samsung C&T and Cheil Industries. Prosecutors argued that the deal was designed to secure Lee's succession and cement his control over the conglomerate, accusing him and other executives of manipulating stock prices and engaging in fraudulent accounting practices at the expense of minority shareholders. These were not minor charges by any who assumed leadership after his father suffered a heart attack in 2014, consistently rejected the allegations, saying the merger followed normal management practices. The path to this ruling was long and turbulent. In late 2024, prosecutors demanded a five-year prison sentence for Lee, even after a Seoul court had previously cleared him of wrongdoing earlier that year. His history of legal troubles only added to the controversy, particularly a bribery conviction linked to former President Park Geun-hye, which led to 18 months behind bars before his release in 2021 and subsequent pardon in 2022. By February 2025, Lee secured an important victory when an appeals court upheld his acquittal on fraud and stock manipulation charges. However, uncertainty persisted as prosecutors retained the right to escalate the case to the Supreme Court. That uncertainty is now gone. The country's highest court has upheld the earlier ruling, permanently closing the chapter on these accusations and giving Samsung breathing room to focus on its business priorities. Industry analysts have emphasized that this decision removes a major obstacle for Samsung's leadership. They believe that eliminating legal uncertainty could encourage more decisive management and allow the company to concentrate on long-term strategies rather than short-term survival. Investors have already reacted positively, boosting Samsung shares as confidence returns to the market. Galaxy Z Fold 7. | Image by PhoneArena Despite the legal victory, the road ahead for Lee is far from smooth. Samsung recently reported a worse-than-expected 56% plunge in second-quarter operating profit, with sluggish AI chip sales deepening investor concerns. Corporate analysts note that Lee now faces the dual challenge of reinforcing Samsung's dominance in its core businesses while identifying new engines for growth. So, Lee must turn his attention to restoring Samsung's momentum in the global tech race. While the Samsung ecosystem is stronger than ever, as my colleague Victor argues, it would be nice if Sammy catches up with rivals on the battery front. Also, how about a slightly cheaper Galaxy Z Fold next time around? Eh, who am I kidding – the $2,000 price tag of the recently released Galaxy Z Fold 7 will probably be topped by the next Sammy foldable flagship. Secure your connection now at a bargain price! We may earn a commission if you make a purchase Check Out The Offer
The Verge
17-07-2025
- Business
- The Verge
Samsung chairman acquitted all over again.
Samsung chairman acquitted all over again. Today Korea's Supreme Court cleared Lee Jae-yong of stock manipulation charges related to a merger which helped him take control of the company founded by his grandfather. He was acquitted by a lower court last February, which prosecutors appealed, but the country's top court sided with the Samsung man.
Japan Times
17-07-2025
- Business
- Japan Times
South Korea's top court clears Samsung chairman Lee in 2015 fraud case
South Korea's top court upheld on Thursday a not-guilty verdict for the chairman of Samsung Electronics Jay Y. Lee, backing two lower court rulings clearing him of accounting fraud and stock manipulation related to an $8 billion merger in 2015. The Supreme Court's verdict permanently removes a long-running legal distraction for Lee as Samsung plays catch-up in a global race to develop cutting-edge AI chips. The verdict upheld an appeals court's ruling dismissing all the charges in the case involving the merger a decade ago between two Samsung affiliates, Samsung C&T and Cheil Industries, which prosecutors said was designed to cement Lee's control of the tech giant. A lower court last year had also cleared Lee of the charges. "The Supreme Court ruling clears a layer of legal uncertainty, which could be a long-term positive for Samsung," said Ryu Young-ho, a senior analyst at NH Investment & Securities. "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," Ryu added. Samsung Electronics shares were little changed after the ruling, up 1.7%. The Supreme Court verdict was widely expected, but comes at a critical moment for Lee, who has faced mounting questions about his ability to lead Samsung Electronics — the world's top memory chip and 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. Business lobby groups welcomed the court's decision, framing it as a stabilizing 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 Lee's leadership, would step up investment and innovation, helping to create jobs and bolster South Korea's economic rebound. For nearly a decade, 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. Park Ju-gun, head of corporate analysis firm Leaders Index, said 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.
Yahoo
17-07-2025
- Business
- Yahoo
South Korea's top court clears Samsung chairman Lee
South Korea's top court has upheld a not guilty verdict for the chairman of Samsung Electronics Jay Y Lee, backing two lower court rulings clearing him of accounting fraud and stock manipulation related to an $US8 billion ($A12 billion) merger in 2015. The Supreme Court's verdict on Thursday permanently removes a long-running legal distraction for Lee as Samsung plays catch-up in a global race to develop cutting-edge AI chips. The Supreme Court upheld an appeals court's ruling dismissing all the charges in the case involving the merger a decade ago between two Samsung affiliates, Samsung C&T and Cheil Industries, which prosecutors said was designed to cement Lee's control of the tech giant. A lower court last year had also cleared Lee of the charges. 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. Samsung Electronics shares were little changed after the ruling, up 1.7 per cent. The Supreme Court ruling was widely expected, but comes at a critical moment for Lee, who has faced mounting questions about his ability to lead Samsung Electronics - the world's top memory chip and smartphone maker - as it grapples with growing competition and playing catch-up in artificial intelligence chips. For nearly a decade, 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.
