Samsung’s executive chairman, Lee Jae-yong, has been acquitted of all charges related to stock and accounting fraud, following a final ruling from South Korea’s Supreme Court that ends a prolonged and high-profile legal battle over a controversial 2015 merger.
The country’s top court upheld not-guilty verdicts handed down by lower courts, clearing Lee of allegations that he manipulated the value of Samsung affiliates to strengthen his grip on the conglomerate. Prosecutors had argued that the $8 billion merger between Samsung C&T and Cheil Industries—two major subsidiaries—was designed to cement Lee’s control following his father’s incapacitation in 2014.
In its ruling on Thursday, the Supreme Court concluded that both the merger and accounting treatment of pharmaceutical arm Samsung Biologics were lawful. “We sincerely thank the court for its wise judgment following a thorough five-year trial process,” Samsung’s legal team said in a statement.
Prosecutors had accused Lee of inflating Samsung Biologics’ valuation through improper accounting in order to gain a controlling stake in the merged entity. They claimed this strategy gave him greater authority within Samsung Group ahead of the expected leadership transition.
Lee, 56, has led the conglomerate since 2014, following the collapse in health of his father, the late Lee Kun-hee. The elder Lee passed away in 2020 after years in a coma. The merger at the heart of the case was considered a crucial step in solidifying the younger Lee’s succession.
This legal victory marks the conclusion of a decade-long saga that has included multiple criminal trials, two jail terms, and a controversial presidential pardon. In 2017, Lee was jailed in a separate bribery scandal involving former President Park Geun-hye. He was later released early and pardoned in 2022 amid efforts to revitalize South Korea’s economy post-pandemic.
The final acquittal has been welcomed by the country’s business community. The Federation of Korean Industries called the ruling a positive development that will “enable more agile leadership” within Samsung, particularly as it navigates global trade tensions and competitive pressures.
Samsung Electronics, the flagship unit of the conglomerate, has faced falling chip and smartphone sales in recent years and continues to contend with mounting challenges from rivals and geopolitical instability—including heightened tariffs from the United States under President Donald Trump’s administration.
In a previous court appearance, Lee acknowledged the gravity of the situation. “The reality facing Samsung is harder than ever,” he said. “But I will overcome and take a step forward.”
The ruling brings closure to a major legal threat hanging over Samsung’s leadership, though the company still faces a turbulent global market and growing scrutiny over its corporate governance.
