South Korea's Supreme Court Upholds Acquittal of Samsung Chairman in Merger Case

South Korea’s Supreme Court has upheld the acquittal of Samsung Electronics Chairman Lee Jae-yong on charges related to stock manipulation and accounting fraud, concluding a years-long legal battle over a 2015 merger that consolidated his control of the tech conglomerate.

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The country’s top court on Thursday dismissed prosecutors’ appeal of the lower court rulings, affirming that the evidence failed to prove that the merger between Samsung C&T and Cheil Industries was unlawfully orchestrated to strengthen Lee’s personal control over the group. The decision is final and cannot be appealed.

In 2024, the Seoul Central District Court had acquitted Lee, citing lack of sufficient evidence. The ruling was upheld by the Seoul High Court in February. On Thursday, the Supreme Court brought the matter to a close, endorsing the legitimacy of the controversial deal.

Samsung’s legal team welcomed the verdict, thanking the court for its decision and asserting that the ruling validated the legality of the merger.

Lee Jae-yong, who formally became chairman of Samsung Electronics in 2022, has effectively led the group since 2014 following his father Lee Kun-hee’s incapacitation and subsequent death in 2020. The 2015 merger played a pivotal role in streamlining the ownership structure to facilitate leadership succession.

Despite Thursday’s acquittal, Lee’s legal history remains complex. He previously served 18 months in prison after being convicted in a separate 2017 bribery case linked to the same merger. That case involved offering bribes to then-President Park Geun-hye to secure government backing for the deal. Although originally sentenced to five years, Lee was paroled in 2021 and granted a presidential pardon in 2022.

The merger had faced criticism from some shareholders, who argued it unfairly favored the Lee family and diluted minority shareholder value.

With the ruling now final, legal challenges to Lee’s corporate leadership appear to have concluded, strengthening his position at the helm of South Korea’s largest conglomerate.