South Korea’s Supreme Court on Thursday upheld a lower court verdict acquitting Samsung Electronics Chairman Jay Y. Lee of accounting fraud and stock manipulation charges in connection with a controversial 2015 merger between two Samsung affiliates.
The top court’s decision ends a protracted legal battle that has spanned nearly a decade and removes a significant hurdle for the de facto head of South Korea’s largest conglomerate. The merger, valued at $8 billion, involved Samsung C&T Corp and Cheil Industries, and was widely seen as a strategic move to solidify Lee’s control over the sprawling tech empire following his father Lee Kun-hee’s incapacitating heart attack in 2014.
In its ruling, the Supreme Court affirmed the judgments of two lower courts, both of which had found Lee not guilty of the charges brought against him by prosecutors, who had argued that the merger unfairly benefitted Lee and damaged shareholder interests.
“The Supreme Court ruling clears a layer of legal uncertainty, which could be a long-term positive for Samsung,” said Ryu Young-ho, senior analyst at NH Investment & Securities. “It remains to be seen how directly and proactively he will engage going forward, but if the owner takes a more active role, it could allow management to focus more on long-term initiatives rather than short-term results.”
Shares in Samsung Electronics rose modestly following the verdict, ending up 1.7% on the day.
Samsung's legal team expressed gratitude for the ruling. In a brief statement, the company said the verdict confirms the legality of the 2015 merger, which had long been a focal point for critics who alleged corporate governance irregularities within the family-run chaebol.
Business lobby groups welcomed the decision, framing it as a stabilising development for the national economy amid rising global competition in the fields of artificial intelligence and semiconductors, as well as ongoing trade tensions between major economies.
“The ruling removes a major legal burden for Samsung and comes at a critical juncture as the company faces mounting pressure in key high-tech sectors,” the Korea Enterprises Federation said in a statement. “Samsung’s role as a leading South Korean company is more critical than ever.”
The group expressed hope that under Lee’s unencumbered leadership, Samsung would increase investment in innovation, contribute to job creation, and help support South Korea’s post-pandemic economic recovery.
Lee, 56, has faced a series of legal challenges over the past decade. In a separate case, he served 18 months of a 30-month sentence related to a bribery scandal involving former president Park Geun-hye, before receiving a presidential pardon in 2022. Despite these legal entanglements, Lee formally became chairman of Samsung Electronics in 2022, inheriting the role held by his late father.
Park Ju-gun, head of corporate analysis firm Leaders Index, noted that Lee must now strike a balance between strengthening his control of the conglomerate and positioning Samsung as a global leader in future growth sectors.
“He must both defend Samsung’s core businesses and find new growth engines, all while consolidating his control,” Park said.
