SEOUL — South Korea’s Supreme Court has acquitted Samsung Executive Chairman Lee Jae-yong of fraud, concluding a five-year legal battle tied to a controversial 2015 merger that cemented his leadership over the tech giant.
The court upheld earlier rulings that cleared Lee of manipulating stock values or engaging in illegal accounting to gain control of the company. This verdict marks the end of a high-profile case that spotlighted the opaque governance practices of South Korea’s largest conglomerate.
“The Supreme Court has clearly confirmed through its final ruling that the merger of Samsung C&T and the accounting treatment of Samsung Biologics were lawful,” Samsung’s legal team stated on Thursday. “We thank the court for its judgment following a thorough trial process.”
Prosecutors had accused Lee of inflating the value of Samsung Biologics to gain greater control in a key merger between Samsung C&T and Cheil Industries. The $8 billion merger deal in 2015 between two Samsung conglomerates was crucial to stabilizing Samsung future but faced scrutiny after his father’s incapacitation in 2014.
The late Lee Kun-hee, Samsung’s longtime patriarch, fell into a coma after a heart attack and died in 2020. His son, Lee Jae-yong, assumed de facto leadership and has remained the face of the company during its expansion and legal challenges.
Lee was first arrested in 2017 on bribery charges linked to former President Park Geun-hye. That case led to a conviction and jail time, though he was later released on parole and granted a presidential pardon in 2022. At the time, officials said his return to leadership was essential for South Korea’s post-pandemic economic recovery.
In 2024, a district court cleared Lee of all fraud charges related to the merger. Prosecutors appealed, but both the High Court and now the Supreme Court have upheld his acquittal.
The Federation of Korean Industries welcomed the ruling, stating it would bring much-needed leadership stability at Samsung and help steer the company through ongoing trade tensions with the United States.
Samsung Electronics, a key part of the conglomerate, has faced shrinking profits in its smartphone and semiconductor businesses. The company has also been hit by global trade shifts and intensifying competition.
Speaking during a 2024 court appearance, Lee acknowledged the company’s difficulties. “The reality facing Samsung is harder than ever, but I will overcome and take a step forward,” he said.
With legal troubles now behind him, Lee is expected to consolidate his role and refocus Samsung’s strategy as it navigates complex market challenges in the years ahead.
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