The legacy of Samsung’s founders is again having trouble with law enforcement. In an investigation that has been going on for a long time, indications of further criminal offenses are said to have appeared.
The public prosecutor’s office in Seoul has been investigating the establishment and processing of the merger of Cheil Industries with Samsung Biologics for some time. As a result of the merger of the two companies, a bribery scandal resulted in Lee Jae Yong being sentenced to prison. After some time in prison, however, he and his lawyers managed to convert the sentence to a suspended sentence.
At the time, the conviction did not mean the end of the investigation. The police department for the economy continued to rummage through the documents and came across other points that raised suspicion, reports the Reuters. As a result, the allegations are confirmed that Lee manipulated the stock market prices in his favor with inside information – and not just for short-term profit-taking, but primarily out of a power calculation.
Power was expanded
Because the Samsung heir owned shares in Cheil Industries but was not directly involved in Samsung Biologics. So before the merger, he made sure that the Samsung subsidiary’s share price fell in relation to the Cheil securities and that he received more Samsung Biologics shares in the merger. This in turn strengthened his own position within the corporate empire.
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Lee had recently hit the headlines when he declared the Samsung family dynasty at the top wants to end. He had apologized for the problems and scandals of the past few years and explained that his children should not be the fourth generation on the group’s steering committee. He also wanted to ensure that unions have a place in the company in the future. Against the background of the new allegations, however, this should cause little trust.