Security News > 2020 > September > Samsung supremo Lee Jae-yong indicted for fraud over role in 2015 merger deal that made him heir apparent

South Korea has indicted Samsung Group vice chairman Lee Jae-yong over his role in a 2015 merger that made him heir apparent to the multinational's empire.

Samsung and Lee have denied the charges, which include alleged breaches of the country's Capital Markets Act and External Audit Act.

The transaction in question saw Samsung's parent company, Samsung C&T, merged with an entity named Cheil Industries for $8bn. Lee owned 23 per cent of Cheil, which owned 46 per cent of Samsung Biologics.

Lee owned none of Samsung C&T. South Korean prosecutors have for some time been probing whether a change of accounting procedures at Samsung Biologics inflated the value of Cheil Industries and therefore saw Samsung C&T pay too much for the company.

Today it acted, saying in a statement that it will indict Lee, alleging that the transactions were plainly designed to position him as heir apparent of Samsung and to do so at the lowest possible cost.

News URL

https://go.theregister.com/feed/www.theregister.com/2020/09/01/samsung_supremo_lee_jaeyong_indicted/