Samsung chief Lee Jae-yong has been cleared of fraud charges by South Korea's Supreme Court, ending a five-year legal battle over a controversial merger.
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| Lee Jae-yong, Samsung’s executive chairman, has been found not guilty of stock and accounting fraud in a landmark South Korean Supreme Court ruling. Image: CH |
Seoul, South Korea – July 17, 2025:
South Korea's Supreme Court has cleared Samsung Electronics Chairman Lee Jae-yong of all fraud charges, marking the conclusion of a years-long legal saga that has gripped the nation and cast a spotlight on corporate governance within its largest conglomerate.
The ruling ends a five-year judicial battle over Lee's alleged role in a controversial 2015 merger deal between Samsung C&T and Cheil Industries, worth approximately $8 billion. Prosecutors accused Lee of orchestrating the merger using stock manipulation and accounting fraud to solidify control over the company, following the incapacitation of his father, Samsung patriarch Lee Kun-hee, who died in 2020.
In its final verdict, the Supreme Court in Seoul upheld not guilty verdicts previously delivered by both a district court in 2024 and a high court on appeal. Thursday’s ruling confirms that the merger and accounting treatment of Samsung Biologics were within legal boundaries.
"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," Samsung’s legal team said in a statement. "We sincerely thank the court for its wise judgment following a thorough five-year trial process."
Lee, who has served as the de facto head of Samsung since 2014, was initially arrested in 2017 in a separate bribery scandal linked to political influence over the same merger. He served part of a jail sentence before being released on parole, later receiving a special presidential pardon amid economic recovery efforts during the COVID-19 pandemic.
The case has drawn intense public scrutiny, as South Korea continues to reckon with the outsized influence and opaque governance of its family-run industrial empires known as chaebols.
Despite legal victories, Samsung continues to face competitive pressures and tepid investor sentiment. Analysts say the company must now refocus on innovation and long-term strategy as global tech rivals gain ground.
Lee's acquittal may ease internal uncertainty at the tech giant, but debate continues about corporate reform and transparency in South Korea’s business sector.