Prosecutors, in this case, appealed against the acquittal of Lee Jae-Yong in South Korea earlier today. The Seoul Central District Prosecutors Office filed the appeal, and it said that the controversial merger of Cheil Industries Inc. and Samsung C&T Corp. was done to solidify Lee's position in Samsung Group at a lower cost so that he could become the chairman of Samsung Electronics, the crown jewel of Samsung Group. The prosecution had demanded a jail sentence of five years, but since Lee received a not-guilty sentence from the court, he walked free. The prosecution had one week to file for an appeal, and they filed it today.
In 2015, after then-Samsung chief Lee Kun-hee suffered a major heart attack, Samsung officials started the merger of Cheil Industries and Samsung C&T. Cheil Industries is Samsung Group's affiliate firm that is into fashion, textiles, chemicals, and even marketing. Samsung C&T is a holding company of Samsung Electronics, and it is into construction, engineering, fashion, and trading. Chiel Industries agreed to acquire Samsung C&T for $7.7 billion. It was alleged that high-ranking Samsung officials, including Lee Jae-yong, were involved in illegal market practices to keep the stock prices of Chiel Industries higher and lower the stock prices of Samsung C&T so that the merger could be done at a lower cost.
Lee spent 18 months in prison in another case involving bribing a close associate of former South Korean president, and he was released from jail in 2021 after a presidential pardon was granted to him.
