In an appeals case, south Korean prosecutors seek a five-year prison sentence and a 500 million KRW fine (approximately $375,000) for Samsung Electronics Chairman Jay Y. Lee.

The charges, which include stock manipulation and accounting fraud, relate to a controversial 2015 merger of Samsung subsidiaries that allegedly solidified Lee’s control over the tech giant.

This appeal follows the acquittal of Lee and 13 other executives 10 months ago on the same charges. A verdict is expected between January and February 2025.

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The case holds significant implications, as it comes during a challenging time for Samsung, dealing with declining profits, amid South Korea’s efforts to reform corporate governance. Prosecutors argue that Lee’s actions undermined the integrity of capital markets and stress that a strict ruling could set a precedent for restructuring chaebol companies and ensuring accountability in corporate practices.

Lee denies the allegations, maintaining that the merger adhered to standard business procedures. The outcome is expected to influence both the future of Samsung and broader corporate reforms in South Korea.