Prosecutors are seeking a five-year prison sentence and a 500-million-won fine, or some 380-thousand U.S. dollars, for Samsung Electronics Executive Chairman Lee Jae-yong on charges of an unfair merger and accounting fraud.

During a final hearing at the Seoul Central District Court on Friday on the case involving a merger of two Samsung affiliates and fraud at Samsung Biologics, the prosecution requested the sentence in light of Lee’s denial, his decision-making authority and the accrual of actual profits.

Referring to Samsung's Everland convertible bond scandal, the state agency said the country has already witnessed Samsung's evasion of taxes in managerial promotions and asserted that the conglomerate has succeeded the second time.

Prosecutors said a corporate structure that allows a controlling shareholder to pursue personal profits is the biggest factor behind aggravating the "Korea discount," lowering national competitiveness.

In September 2020, Lee and others were indicted over allegations that Samsung management intentionally lowered the value of group affiliate Samsung C&T while inflating that of another affiliate, Cheil Industries, ahead of the 2015 merger to help benefit Lee in his ascension in the company.

They are also suspected of accounting fraud at a third affiliate, Samsung Biologics, to help facilitate the merger, which ultimately facilitated an overhaul of the group’s governance structure by Lee.