Samsung’s de facto leader, Lee Jae-yong, has been exonerated by South Korea’s Supreme Court of all fraud charges, putting an end to a prolonged legal conflict regarding his involvement in a 2015 merger deal.
Lee, who is the grandson of Samsung’s founder and has led the company since 2014, was accused of employing fraudulent means to gain control of the firm through stock and accounting manipulations.
In its final judgment, the Supreme Court in Seoul confirmed Lee’s innocence after he was previously acquitted in two lower court trials.
The case brought significant attention to the tech giant, amid broader concerns in South Korea about corporate corruption linked to powerful family-run conglomerates, or chaebols.
“With today’s conclusion by the Supreme Court, the lawfulness of the Samsung C&T merger and the accounting for Samsung Biologics has been unequivocally validated,” Samsung’s legal representatives stated on Thursday.
“We deeply appreciate the court’s prudent judgment following a comprehensive five-year legal process.”
Lee faced accusations of fraud tied to a merger allegedly aimed at consolidating his control over the company from his father, Lee Kun-hee, who experienced health issues and legal troubles in 2014 and passed away in 2020.
The younger Lee was initially arrested in 2017 on bribery charges for securing government support for a merger between two Samsung subsidiaries.
Throughout his legal issues, his incarceration terms were curtailed, including a case where he received a special presidential pardon while on parole.
The government stated at the time that the country’s leading businessman was needed to drive South Korea’s economic revival amid the Covid-19 pandemic.
In 2024, a district court acquitted Lee of all merger-related charges, totaling approximately $8 billion (£5.97 billion), between two subsidiary companies.
Following an appeal by prosecutors in the High Court, Lee was again cleared of the allegations.
Legal proceedings over the past decade have compounded Samsung’s challenges, as the firm contends with escalating competition and a lackluster performance on the stock market.
