South Korea's Supreme Court on Thursday, 17 July, delivered a decisive acquittal for Samsung Electronics chairman Lee Jae-yong, bringing an end to a nearly decade-long legal saga that has cast a shadow over the country's most powerful conglomerate.
The ruling clears Lee of all charges connected to the controversial 2015 merger between Samsung C&T and Cheil Industries, which prosecutors argued was designed to consolidate his control over the Samsung empire at the expense of minority shareholders.
The outcome marks a pivotal moment for Samsung, South Korea's economy, and the global tech industry amid fierce competition in semiconductors and artificial intelligence.
Supreme Court Dismisses All Charges
Lee and 13 other Samsung executives had faced a slew of charges brought in 2020, including stock price manipulation, breach of trust, and accounting fraud linked to Samsung Biologics, a subsidiary valued at over ₩4 trillion (roughly £2.2 billion or $2.88 billion). Prosecutors alleged the 2015 merger artificially inflated Cheil's stock while undervaluing Samsung C&T, allowing Lee to increase control at minimal personal cost.
However, the Supreme Court upheld earlier rulings, finding the merger lawful and business-driven. All 23 charges were dismissed, with the court stating there was insufficient evidence to prove any wrongdoing.
'The evidence was insufficient to prove illegality,' the court noted, according to Reuters.
Samsung Leadership Now Unburdened
Samsung's legal team welcomed the ruling, calling it a 'wise judgment' that validated the merger process and accounting practices. In a statement shared by AP News, Lee's lawyers expressed relief and readiness to focus on the company's future.
Markets responded swiftly. Samsung shares rose by over 3% in Seoul, buoyed by the removal of legal uncertainty and investor optimism around strategic continuity.
Deals and Diversification Back on Track
Freed from legal distraction, Samsung has wasted no time ramping up its acquisition strategy. In May, its US subsidiary Harman International purchased the audio division of Masimo for approximately £271 million ($350 million). Weeks later, Samsung finalised a deal worth around £1.27 billion (€1.5 billion or $1.63 billion) to acquire Germany's FläktGroup, aimed at boosting cooling infrastructure for AI-driven data centres.
Samsung is also in the process of acquiring US digital health company Xealth, marking a strategic shift into digital healthcare and wearables.
'Now that the legal cloud has cleared, Samsung can confidently pursue its next phase of innovation,' said analyst Ryu Young-ho, speaking to The Korea Herald.
A Win for the Economy, But Not Without Controversy
Samsung contributes nearly 17% of South Korea's exports, making the court's decision highly consequential. Business groups such as the Korea Chamber of Commerce and Industry said the ruling strengthens investor confidence and enables Samsung to take the lead in next-generation technologies.
Lee Sang-ho of the Federation of Korean Industries called the outcome 'a stabilising force' for the national economy. But not everyone welcomed the verdict.
Critics argue the ruling reflects a longstanding double standard favouring chaebols, South Korea's powerful family-run conglomerates. Civic groups, including the Citizens' Coalition for Economic Justice, said the verdict prioritised corporate control over shareholder fairness and accountability.
'This sends a troubling message that legal standards may differ depending on one's status,' a spokesperson told The Wall Street Journal.
What's Next for Samsung?
With legal uncertainty behind him, Lee is expected to accelerate Samsung's global roadmap, which includes reclaiming leadership in memory chips, scaling up AI technologies, and investing in climate and health tech.
Lee previously described Samsung's outlook as a 'do-or-die survival moment'. Now, with his full authority restored, that phrase seems less of a warning and more of a strategy to reassert the company's global dominance in a fast-evolving tech landscape.
