Samsung boss Lee Jae-yong cleared of fraud charges by S. Korea’s top court
Samsung chief Lee Jae-yong has been cleared by South Korea’s Supreme Court of fraud charges, ending a years-long legal battle over his role in a controversial 2015 merger deal.
Lee, the grandson of Samsung’s founder and the company’s de facto leader since 2014, was accused of using stock and accounting fraud to strengthen his control over the tech giant, News.Az reports, citing BBC.
Prosecutors alleged he inflated the value of Samsung Biologics to secure a bigger stake in a key subsidiary during an $8 billion merger.
The Supreme Court upheld earlier rulings acquitting Lee, confirming that “the merger of Samsung C&T and the accounting treatment of Samsung Biologics were lawful,” Samsung’s lawyers said in a statement. “We sincerely thank the court for its wise judgment following a thorough five-year trial process.”
The case has been closely watched in South Korea, where powerful family-run conglomerates, known as chaebols, have long faced scrutiny over corruption and corporate governance.
Lee’s legal troubles began in 2017 when he was arrested on bribery charges related to former President Park Geun-hye. He served separate prison terms but was later released on parole and received a special presidential pardon, with the government citing his role in driving South Korea’s post-pandemic economic recovery.
The latest fraud case focused on the 2015 merger between Samsung C&T and Cheil Industries, which prosecutors argued was designed to transfer control from Lee’s ailing father, Lee Kun-hee, who died in 2020.
Despite the legal victory, Samsung faces growing pressure from global competition and economic uncertainty. Its core businesses — smartphones and semiconductors — have seen declining sales, while rival SK Hynix surpassed Samsung in profits last year thanks to advances in AI chip technology.
Lee acknowledged the company’s challenges during a 2024 trial, saying: “The reality facing [Samsung] is harder than ever, but I will overcome and take a step forward.”
The ruling was welcomed by South Korea’s business community. The Federation of Korean Industries said the decision would allow for “swift decision-making at the top of Samsung,” which it believes is crucial for navigating trade tensions with the United States and other hurdles.
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