South Korea’s Supreme Court acquits Samsung Chairman Lee in 2015 merger case

South Korea’s Supreme Court on Thursday upheld a not-guilty verdict for the chairman of Samsung Electronics Jay Y. Lee, backing two lower court rulings acquitting him of accounting fraud and stock manipulation related to an $8 billion merger in 2015.

The Supreme Court’s verdict permanently removes a long-running legal distraction for Lee as Samsung plays catch-up in a global race to develop cutting-edge AI chips.

The verdict maintained an appeals court’s decision to drop all charges in the case concerning the merger of Samsung C&T and Cheil Industries, two Samsung affiliates, ten years prior. Prosecutors claimed that the transaction was intended to strengthen Lee’s hold on the tech behemoth.

A lower court last year had also cleared Lee of the charges.

“The Supreme Court ruling clears a layer of legal uncertainty, which could be a long-term positive for Samsung.

“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,” said Ryu Young-ho, a senior analyst at NH Investment & Securities.

Samsung Electronics shares were little changed after the ruling, up 1.7%.

The South Korea’s Supreme Court verdict was widely expected, but comes at a critical moment for Lee, who has faced mounting questions about his ability to lead Samsung Electronics, the world’s top memory chip and smartphone maker.

Samsung’s lawyers said they were “sincerely grateful” to the court for its decision and added in a statement that the ruling confirmed that the merger was legal.

Business lobby groups welcomed the court’s decision, framing it as a stabilising development for the South Korean economy.

The Korea Enterprises Federation said the ruling removes a major legal burden for Samsung and comes at a time of intensifying global competition in high-tech industries like AI and semiconductors as well as economic pressure from U.S. trade tariffs.

“Samsung’s role as a leading South Korean company is more critical than ever,” the group said in a statement.

The group said it hoped Samsung, under Lee’s leadership, would step up investment and innovation, helping to create jobs and bolster South Korea’s economic rebound.

For nearly a decade, Lee has faced legal challenges, including those from the merger that paved the way for his succession after his father, Lee Kun-hee, had a heart attack in 2014 that left him in a coma.

Park Ju-gun, head of corporate analysis firm Leaders Index, said Lee now faces dual challenges of tightening his grip on the conglomerate while steering Samsung back to leadership in key sectors.

“He must both defend Samsung’s core businesses and find new growth engines, all while consolidating his control,” Park said.

(REUTERS)

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