Samsung Chief Lee Jae-yong Cleared in 2015 Merger Case by Supreme Court

In a landmark ruling, the Supreme Court of South Korea has acquitted Samsung Electronics Chairman Lee Jae-yong of all corruption charges related to the controversial merger of two Samsung affiliates in 2015. This brings an end to a years-long legal battle that has cast a shadow over the leadership of the nation’s largest conglomerate and the biggest contributor to its economy.

Lee Jae-yong can now focus on Samsung’s growth

At the heart of the case was the merger between Cheil Industries and Samsung C&T a decade ago. Lee, who held a 23.2% stake in Cheil Industries, was accused of engineering the merger with unlawful practices. Prosecutors alleged that the merger helped Lee tighten his control over Samsung C&T — the de facto holding company of the Samsung Group.

They accused Lee of manipulating stock prices by inflating Cheil’s value and deflating that of Samsung C&T, primarily through misleading market activities, false disclosures, and behind-the-scenes lobbying. Lee was formally indicted in September 2020. While the lower courts acquitted him on all charges, prosecutors filed an appeal in February this year.

The case went to the Supreme Court, which delivered its final verdict on Thursday. The top court upheld the decisions of two lower courts that had previously cleared Lee of wrongdoing. The ruling officially clears Lee of charges including stock price manipulation, breach of duty, and accounting fraud. It ends one of the most high-profile corporate trials in South Korea in recent years.

This ruling also removes the final legal barrier for Lee, who has already served 18 months in prison in a separate bribery case. He received a presidential pardon on that matter in August 2022. Despite legal hurdles, Lee Jae-yong has remained a central figure in South Korea’s business landscape. With this acquittal, he can finally breathe a sigh of relief and focus on Samsung’s growth.