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The prosecution eventually prosecuted Samsung Electronics Vice President Lee Jae-yong. In the merger process of Samsung C&T and Cheil Industries, they concluded that there were illegal activities for the succession of the management rights of the Samsung Group. Controversy is growing because it is the first case of non-compliance with the recommendation of the Investigations Review Committee of the Supreme Prosecutor’s Office. Seoul Central District Prosecutor’s Office (Deputy Prosecutor Bok-Hyun Lee), Seoul Central District Prosecutor’s Office indicted Vice President Lee on the charges of violating the Capital Markets Law on Day 1. Ten Samsung officials were also indicted , including Choi Ji-sung (69), former head of Samsung’s Future Strategy Office (vice president) and Kim Jong-joong (64), former head of the Strategy Team (president) of the Future Strategy Office. It has been 1 year and 9 months since the Securities and Futures Commission filed a complaint with the prosecution for fraudulent accounting in November 2018.
Suspicion of market price control, business negligence, etc.
Controversy in the first case according to the opinion of the deliberation committee
The prosecution ruled that the merger between Samsung C&T and Cheil Industries in 2015 was planned by the US War Office for the stable succession of management rights from Vice President Lee. In this process, the prosecution found that Vice President Lee also received and approved an important report.
The prosecution said that Samsung had calculated an unreasonable merger ratio on the condition of exchanging one share of Cheil Industries and three shares of Samsung C&T to benefit Vice President Lee, who held a 23.2% stake in Cheil Industries at the time, but it did not have a stake in Samsung C&T. Then, to adjust the share prices of the two affiliates so as not to interfere with the merger, ▶ dissemination of false information ▶ concealment of important information ▶ public announcement of false positives ▶ illegal lobbying to secure voting rights for the national pension ▶ It is considered that various illegal transactions, such as market price control through the intensive purchase of treasury shares made. The prosecution said: “In this process, Samsung C&T was not properly valued and investors suffered losses,” and applied a charge of business negligence to Vice President Lee.
Prosecutors “Accused by the opinion of 30 external officials” Legal circles “The existence of the Investigation Deliberation Committee disappears”
The charges were not on the arrest warrant that was dismissed after filing a claim against Vice President Lee in June. The prosecution also found that the accounting change for Samsung Bio, a Cheil Industries subsidiary, was deliberately fraudulent and, furthermore, charged Vice President Lee and others with violating the External Audit Act.
Former President Kim Jong-jung and former Samsung C&T CEO Kim Shin, who testified that “the merger was not related to the succession of management rights” and that “the US war office was not involved in the merger “Were charged with perjury.
In early June, the Investigative Deliberation Committee of the Supreme Prosecutor’s Office, made up of external experts, reviewed the matter and recommended that the investigation be suspended and not processed with a 10 to 3 opinion.
This is the first time since the Research Review Committee was created in 2018, it has not followed the recommendations. The Prosecutor’s Office said: “The matter is serious and the objective evidence is clear, and as a case in which national suspicion has been raised, it has been determined that it is necessary to receive a judicial sentence.” To do this, opinions were obtained from about 30 people in the fields of law, finance, management and accounting. I did too “.
Samsung’s side denied all the charges and said: “The judgment of the Investigative Deliberation Committee is the judgment of the people, so the prosecution has respected all the recommendations. The fact that the prosecution was carried out only in this case is not only against the will of the people, it also means that the investigation was carried out with the aim of prosecuting Lee from the beginning. ” A lawyer from Seocho-dong also noted that “the importance of the Investigation and Deliberation Committee has disappeared.”
Reporters Kim Min-sang, Kim Soo-min, Na Unchae [email protected]
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