South Korea’s Supreme Court Acquits Samsung Boss in High-Profile Fraud Case
Samsung’s executive chairman Lee Jae-yong has been cleared of all fraud allegations by South Korea’s Supreme Court, bringing an end to a high-stakes legal battle that has spanned nearly a decade and cast a long shadow over the country’s most powerful conglomerate.
The ruling, delivered Thursday, upheld earlier verdicts from lower courts that had found Lee not guilty of stock manipulation and accounting fraud related to a controversial 2015 merger between Samsung C&T and Cheil Industries – a deal central to Lee’s succession as leader of the Samsung empire.
Lee, who effectively took over the reins of the tech giant in 2014 following his father’s incapacitation, had been accused of inflating the value of Samsung Biologics to gain control of a larger stake in the merged entity. Prosecutors argued that the maneuver gave Lee a firmer grip on Samsung’s broader corporate structure as he prepared to succeed his late father, Lee Kun-hee.
In a statement following the decision, Samsung’s legal team welcomed the court’s conclusion: “The Supreme Court has made it clear that the 2015 merger and the accounting practices involved were lawful. We appreciate the court’s fair and final judgment after years of review.”
The ruling is being seen as a major development not just for Samsung but also for South Korea’s wider business landscape, where powerful family-run conglomerates – or chaebols – have frequently come under scrutiny for alleged corporate misconduct.
Lee’s legal troubles began in 2017 when he was jailed on separate bribery charges linked to a corruption scandal involving former President Park Geun-hye. Though sentenced to prison, he was released early on parole and later received a presidential pardon. The government at the time justified the move by citing his role in national economic recovery efforts during the COVID-19 crisis.
Despite the legal challenges, Lee remained at the helm, steering the company through turbulent waters. Samsung Electronics, the group’s flagship unit, has faced falling chip and smartphone sales in recent years. The company has also been under pressure from rivals such as SK Hynix, which recently overtook Samsung in profitability through early moves in AI chip development.
During a court appearance last year, Lee acknowledged the mounting pressure. “The challenges before us are greater than ever, but I am committed to pushing forward,” he said.
The acquittal has been welcomed by the Korean business community, with the Federation of Korean Industries noting that the decision brings clarity to leadership at Samsung. “We expect this ruling to help Samsung make timely decisions amid global trade uncertainties, especially with the U.S.,” the group said.
As Samsung looks to regain momentum in a rapidly shifting tech landscape, the court’s decision removes a significant legal barrier for Lee – and marks a turning point in one of the country’s most closely watched corporate sagas.
