Why South Korea's prosecutor called for a five-year prison sentence for Samsung's chairman
South Korea’s prosecutors have requested a five-year prison sentence for Jay Y. Lee, chairman of Samsung Electronics, following charges related to a merger between two of the company’s subsidiaries in 2015. The case, which has been under investigation for years, once again puts one of South Korea’s most powerful men and the relationship between chaebol (large business conglomerates) and the country’s politics in the spotlight.
The case centers on the 2015 merger between Samsung C&T and Cheil Industries, a strategic move allegedly aimed at strengthening Jay Y. Lee’s control over the conglomerate ahead of his rise to chairman of Samsung Electronics. Prosecutors say the move harmed minority shareholders and manipulated the value of the companies involved to Lee’s benefit.
In addition, Jay Y. Lee is accused of using Samsung’s influence to gain political and government support for the merger, including involving high-ranking officials in verifying the deal. This is not the first time the Samsung leader has faced legal charges of corruption and abuse of power. In 2017, he was sentenced to prison in another case involving the bribery of former President Park Geun-hye, though he was later released on appeal.
Jay Y. Lee’s legal team maintains that the merger was a legitimate business move necessary to ensure Samsung’s stability and competitiveness in the global market. They also claim that the allegations lack solid evidence and that the judicial process has taken an excessively long time, affecting Jay Y. Lee’s reputation and that of the group.
However, some sectors say that the ruling against Jay Y. Lee could negatively impact Samsung, and thus the country's economy, since the company is responsible for a large portion of South Korea's GDP.