Samsung Electronics chairman Lee Jae-yong awaits a ruling from the Seoul High Court on Feb. 3 over allegations linked to a 2015 merger between Samsung C&T and Cheil Industries.

Prosecutors claim the US$8 billion merger was designed to strengthen Lee’s control over Samsung.

They are seeking a five-year prison sentence, citing accounting manipulation by Samsung BioLogics, a Samsung affiliate.

Lee denies any wrongdoing, and a lower court previously acquitted him, ruling the merger had a “rational business purpose”.

Prosecutors have appealed, and the case could reach the Supreme Court.

The merger also raised corporate governance concerns, leading to a US$108.5 million payout to Elliott and a lawsuit from the National Pension Service.

Meanwhile, Samsung Electronics faces market challenges. The company recently warned of weak AI chip sales, losing business to SK hynix in supplying Nvidia’s AI products.