Prosecutors sentenced Lee Jae-yong to five years in prison on appeal for 'unfair merger'

The prosecution also demanded a five-year prison term and a fine of 500 million won in the appeal trial of Samsung Electronics Chairman Lee Jae-yong, who was put on trial on charges of unfair merger between Cheil Industries and Samsung C&T.

The Seoul High Court today held an appellate court hearing for Chairman Lee, who was indicted on charges of violating laws on capital markets and financial investment businesses, and former and current executives and employees of Samsung Group.

As in the first trial, the prosecution demanded five years in prison and a fine of 500 million won for Chairman Lee, and four and a half years in prison and 500 million won for Choi Ji-sung, former head of Samsung's Future Strategy Office, and Kim Jong-joong, former strategic team leader, respectively.

He also demanded a three-year prison term and a fine of 100 million won from the former deputy chief of the Future Strategy Office.

Prosecutors said the defendants damaged the foundation of the capital market for the succession of the group's head, pointing out that what the defendants eventually damaged was the justice of our economy and the constitutional values that underlie the capital market.

He stressed that if the defendants are exonerated, the controlling shareholders will push for the merger in a way that meets their interests through illegality and expediency.

Chairman Lee's lawyers refuted the prosecution's claim, saying the merger was a situation where the market's attention, including experts, could not conceal the reality with false facts.

Chairman Lee and others were handed over to trial in September 2020 on charges of illegally participating in the merger process between Samsung C&T and Cheil Industries, but were acquitted in the first trial, and the prosecution appealed against it.