Lee Jae-yong, the de facto leader of Samsung and grandson of the conglomerate’s founder, has been acquitted of fraud charges following a long-standing legal battle concerning his role in a controversial 2015 merger deal. In a landmark decision, South Korea’s highest court ruled in favour of Lee, ending a years-long legal saga that had captivated the nation.
Lee, who has led Samsung since 2014, faced allegations that he used stock manipulation and fraudulent accounting practices in an attempt to consolidate control over the tech giant. The merger between two Samsung subsidiaries—Samsung C&T and Samsung Biologics—was central to the case, with prosecutors claiming it was orchestrated to strengthen Lee’s position within the company after his father, Lee Kun-hee, fell ill in 2014 and passed away in 2020.
The Supreme Court’s ruling upheld the previous not guilty verdicts delivered in two earlier trials, drawing a close to the highly scrutinized case. The final decision, made on February 5, 2024, affirmed the legality of the merger and the accounting practices involved.
“Today, the Supreme Court has clearly confirmed through its final ruling that the merger of Samsung C&T and the accounting treatment of Samsung Biologics were lawful,” said a statement issued by Samsung’s legal team on Thursday. “We sincerely thank the court for its wise judgment following a thorough five-year trial process.”
The case has been emblematic of South Korea’s ongoing battle with corruption among its family-run conglomerates, known locally as chaebols. Samsung, as the nation’s largest conglomerate, has been at the heart of numerous corruption scandals, with Lee’s case drawing particular attention due to the power and influence of his family.
Lee was initially arrested in 2017 on charges of bribery, linked to a separate scandal involving the South Korean government’s alleged support of the merger. During his legal struggles, Lee was granted a special presidential pardon, allowing him to shorten his jail time in 2021, as the government deemed his leadership essential for South Korea’s economic recovery following the COVID-19 pandemic.
Despite the legal challenges, Samsung’s financial performance has been under pressure, with intensifying competition and lacklustre stock market performance adding to the company’s woes. Lee’s leadership has been marked by the shadow of these legal cases, which have only intensified scrutiny on the company.
This decision marks the conclusion of a significant chapter for Lee Jae-yong and Samsung, with hopes that the company can now move past these legal hurdles and focus on innovation and growth amidst an increasingly competitive global tech market.
