In a landmark ruling, Lee Jae-yong, the acting head of Samsung, has been absolved of fraud charges by South Korea's Supreme Court, bringing an end to a protracted legal saga originating from a controversial merger deal completed in 2015. The apex court has upheld earlier not guilty verdicts, affirming that Lee's actions surrounding the merger of Samsung C&T and Samsung Biologics were lawful, quelling concerns about corruption linked to the conglomerate's leadership.
The ruling has sparked relief within Samsung and its legal representatives. "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," stated Samsung's lawyers. They expressed their gratitude for what they deemed a wise judgment following a lengthy five-year legal battle.
Lee, grandson to Samsung founder Lee Byung-chul, has served as the company's de facto leader since 2014 and was embroiled in allegations that suggested he had committed stock and accounting fraud to secure his control of the company. The gravity of the case has been pronounced, especially following the deterioration of his father's health, Lee Kun-hee, who faced his own legal issues prior to his death in 2020.
The younger Lee's legal troubles began in 2017 with allegations of bribery connected to gaining governmental backing for the merger of two Samsung subsidiaries, a case that has drawn notable public attention. He has undergone several trials, with sentences occasionally interrupted by special presidential pardons, which proponents argued were necessary to maintain stability in South Korea's economy during the pandemic.
A 2024 district court ruling had already cleared Lee of any wrongdoing linked to the $8bn (£5.97bn) merger, a decision subsequently upheld after prosecution appeals at the high court level. Despite this legal victory, the history of litigation affecting Samsung continues, coinciding with the company's struggles against increased competition and lackluster stock market performance in recent times.
