Samsung Electronics executive chairman Lee Jae-yong has been cleared of all charges in connection with a long-running legal battle over alleged wrongdoing in a controversial merger and accounting fraud case. South Korea's Supreme Court upheld lower court rulings acquitting Lee of all accusations, bringing an end to nearly a decade of legal uncertainty surrounding the conglomerate's heir.
According to Yonhap News and Chosun Ilbo, the Supreme Court on July 17, 2025, rejected the prosecution's final appeal concerning the 2015 merger of Samsung C&T and Cheil Industries, as well as allegations of accounting fraud at Samsung Biologics.
The court's decision confirms that the merger and associated financial activities were conducted in compliance with the law. Outside the Supreme Court, Lee's legal team stated that the ruling confirms the legality of the disputed merger and accounting practices under Korean regulations.
Lee was first indicted in September 2020 on charges that he manipulated stock prices and engaged in illicit transactions to solidify control over Samsung through the controversial 2015 merger. However, both the initial and appellate courts found insufficient evidence to link him directly to the alleged misconduct and issued not-guilty verdicts.
Nine-year legal battle concludes
The verdict marks a pivotal moment for Samsung Electronics executive chairman Lee Jae-yong, who has spent more than nine years entangled in legal proceedings. His legal troubles began with South Korea's 2016 political scandal involving former President Park Geun-hye. Lee was jailed twice and faced repeated questioning in connection with the high-profile merger and allegations of accounting fraud.
With the Supreme Court upholding previous not-guilty verdicts, Lee is now officially free from legal risk related to the long-running case.
Attention now turns to Lee's next steps as head of South Korea's most powerful conglomerate. He faces several pressing challenges—including steering the company through global economic uncertainty, restoring Samsung's edge in technology, and restructuring the group's vast management system.
Strategic moves ahead for Samsung
Industry analysts say the end of Lee's legal troubles could pave the way for major strategic moves. These may include acquisitions, increased investment in growth areas, and reforms across the group.
Many will be watching to see how Lee defines the "New Samsung" in the years ahead, as he looks to secure the company's future and cement his legacy.
Article edited by Jerry Chen
