Samsung heir should not be indicted, South Korea panel recommends

SEOUL: An external review panel in South Korea recommended that prosecutors should not indict Samsung Group heir Jay Y. Lee over a 2015 merger and alleged accounting fraud, the Supreme Prosecutors' Office said on Friday.

The recommendation could help pave the way for Lee's attorneys to challenge the justification for the prosecution's case to try him on charges stemming from the merger of two Samsung affiliates. The panel comprised 15 experts from fields including legal circles, academia, media and civic groups. Its recommendation is not binding, but the prosecutors have followed such panels' advice in all eight previous instances, legal experts said.

"The majority of the external review panel composed of 14 members as one member did not attend the meeting, voted to recommend prosecutors not to indict Lee and halt the investigation against him," a spokesperson at the Supreme Prosecutors' Office said,

Prosecutors said in a statement they plan to examine their final decision after evaluating their investigation's results and the external panel's decision. Attorneys for Lee said in a statement they appreciated the decision from the panel. The Supreme Prosecutors' Office has the option to form such a panel when either prosecution or a defendant requests a review of experts, the ministry of government legislation said.

The recommendation is a boost for Lee's defence because the precedent of the panel review is in their favour, a criminal defence lawyer not involved in the case said. "The prosecutors have to be affected by the panel's decision because now they're going to need to further justify their reasoning to bring Lee to a trial," the lawyer said.

A Seoul court this month denied an arrest warrant request for Lee, vice chairman of Samsung Electronics (005930.KS), after prosecutors accused him of accounting fraud and stock manipulation. Prosecutors had asked the court to issue an arrest warrant for Lee, 52, as part of a probe into alleged accounting fraud involving a Samsung drugs affiliate and a merger of two other affiliates.