Samsung's Jay Y. Lee Faces Jail as Leadership Questions Loom Amid Tumultuous Merger Case

South Korean prosecutors have requested a five-year jail term for Samsung Electronics Chairman Jay Y. Lee, amid an appeal regarding his role in the contentious merger of two Samsung affiliates. The case raises doubts over Lee's leadership as Samsung faces declining profits and stock prices.

Jay Y. Lee, Chairman of Samsung Electronics, is facing a five-year jail sentence as South Korean prosecutors challenge a previous court ruling acquitting him of accounting fraud in a controversial merger case. The appeal is crucial to Lee, who leads the world's leading memory chipmaker, facing declining performance.

The merger between Samsung C&T and Cheil Industries has cast doubts on Lee's leadership, accused of prioritizing his personal interests over minority shareholders. As the court proceedings wrap up, Lee pledges to reinvigorate Samsung amid falling profits and stock prices.

As Samsung struggles against rivals like SK Hynix and TSMC in the booming AI chip market, concerns over U.S. tariffs also pressure the conglomerate's shares, which have plunged over 25% this year.

(With inputs from agencies.)