The Supreme Court of South Korea acquitted the head of Samsung Electronics on Thursday, concluding a series of criminal charges and ending the chairman's prolonged legal troubles.
The court cleared Lee Jae-yong, the chairman of Samsung Electronics, of accounting fraud and stock manipulation, alleviating uncertainty as the company navigates challenges, including U.S. tariffs and global competition in artificial intelligence chip development.
Samsung is a leading family-owned conglomerate, or chaebol, that has significantly contributed to South Korea's status as a global export powerhouse, accounting for nearly one-sixth of the country's total exports. However, the company has faced criticism regarding its legal immunity.
Over the last decade, Lee, part of the founding family, has frequently appeared in court and served time for bribing a former president, later receiving a pardon.
The charges resolved on Thursday originated from the 2015 merger of two Samsung subsidiaries, which solidified Lee's control over Samsung Electronics and Samsung Group. Prosecutors accused him of manipulating stock prices and committing other offenses during the merger.
A district court cleared Lee of all charges in February 2024 due to insufficient evidence, a ruling upheld by the Seoul High Court. The Supreme Court's decision on Thursday finalized Lee's acquittal.
The criminal charges had hindered Lee's leadership of Samsung Electronics at a time when the company faced a decline in profits.
Lee did not comment immediately after the ruling, but his lawyers expressed gratitude to the court for its decision.
Pro-business groups welcomed the ruling, arguing that Lee's legal freedom would enable him to address challenges facing the company more effectively. The Korea Enterprises Federation stated it hopes this decision will encourage Samsung to invest more in semiconductors and AI technologies.
Conversely, the civic group People’s Solidarity for Participatory Democracy criticized the Supreme Court's ruling, claiming it highlights Samsung's pervasive influence over South Korean society and the judiciary, referring to the nation as a “Republic of Samsung.”
Lee's father, Lee Kun-hee, who transformed Samsung into a global leader, was convicted twice for bribery and corruption but never served jail time due to presidential pardons. Lee Jae-yong has been managing the conglomerate since his father's incapacitation in 2014, following the elder Lee's death in 2020.
Lee Jae-yong, also known as Jay Y. Lee, has faced ongoing legal challenges. In 2017, he was convicted for bribing then-President Park Geun-hye to secure government backing for the crucial 2015 merger, serving a two-and-a-half-year prison term before his parole in 2021. In 2022, he was pardoned by then-President Yoon Suk Yeol, allowing him to officially assume the chairmanship of Samsung.