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De Facto Samsung Leader Attends Hearing on Alleged Illegal Succession

Written: 2021-08-19 12:52:06Updated: 2021-08-19 14:23:11

De Facto Samsung Leader Attends Hearing on Alleged Illegal Succession

Photo : YONHAP News

Samsung Electronics Vice Chairman Lee Jae-yong, who was recently released on parole, attended a hearing for a separate case on an alleged illegal succession of managerial rights.

Appearing at the Seoul Central District Court on Thursday, Lee kept silent when asked about his recent managerial activity that would violate his parole regulations. 

Lee is restricted from working at Samsung for five years after the end of his prison term and requires approval from the justice minister if he were to resume management duties.

He is currently facing charges of violating the capital market law.

Prosecutors allege Samsung management intentionally lowered the value of group affiliate Samsung C&T while inflating that of another affiliate Cheil Industries ahead of a 2015 merger, to help benefit Lee in his managerial succession.

The state agency also suspects alleged accounting fraud at a third affiliate, Samsung BioLogics, helped facilitate the merger, which ultimately assisted Lee in overhauling the group's governance structure.

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