Samsung Boss Lee Jae-yong Cleared of Fraud by South Korea’s Supreme Court

Samsung Electronics Executive Chairman Lee Jae-yong has been acquitted of stock and accounting fraud by South Korea’s top court, bringing an end to a years-long legal saga that threatened to shake the leadership of the country’s largest conglomerate. The Supreme Court upheld earlier rulings by lower courts, concluding that the 2015 merger between Samsung C&T and Cheil Industries, as well as the accounting methods used at affiliate Samsung Biologics, were lawful.

Prosecutors had accused Lee of inflating the value of Samsung Biologics to secure a larger share in Samsung C&T, thereby tightening his control over the broader Samsung Group. They argued that the merger, valued at approximately $8 billion, was orchestrated to facilitate the leadership transition following Lee’s father, Lee Kun-hee, being incapacitated in 2014.

The final verdict reaffirmed previous acquittals and was applauded by the business community, with the Federation of Korean Industries stating the ruling would ensure timely decision-making at Samsung amid economic uncertainty. “Today, the Supreme Court has confirmed… the merger and the accounting treatment were lawful,” said Samsung’s legal team.

Lee, who took de facto control of Samsung in 2014 and has faced multiple imprisonments and pardons, acknowledged last year that Samsung faces significant challenges as profits decline and global competition intensifies. With this ruling behind him, Lee now aims to refocus leadership on navigating geopolitical trade issues and recovering from pandemic-era slowdowns.