South Korea’s Supreme Court has upheld the acquittal of Samsung Electronics Chairman Lee Jae-yong in a landmark decision that ends years of legal proceedings surrounding the controversial 2015 merger between Samsung C&T and Cheil Industries. Prosecutors had accused Lee of orchestrating stock price manipulation and accounting fraud to tighten his control over the conglomerate after his father’s incapacitation in 2014.
However, in its July 17, 2025, ruling, the top court agreed with earlier verdicts from lower courts, confirming that the prosecution failed to prove any unlawful intent or illegal conduct. The decision definitively clears Lee, affirming that the merger was not conducted to unjustly benefit the Lee family.
Lee Jae-yong, who formally became chairman in 2022, had previously served prison time for a separate bribery scandal tied to the same merger and former President Park Geun-hye. He was released on parole in 2021 and pardoned in 2022.
End of an Era for Legal Uncertainty
The Supreme Court’s ruling concludes a decade-long legal saga that has cast a shadow over Samsung’s leadership and South Korea’s broader business climate. The 2015 merger, while critical in consolidating Lee’s control over Samsung Group, drew criticism for undervaluing minority shareholder interests. Nonetheless, courts found that corporate decisions made during the merger fell within legal bounds.
Market analysts and corporate leaders welcomed the outcome. “The ruling removes a major legal overhang that has long clouded Samsung’s governance,” said Ryu Young-ho of NH Investment & Securities. The Korea Enterprises Federation added that the verdict will help stabilize the conglomerate’s leadership structure at a time of global economic uncertainty.
Looking Ahead: Corporate Reform and Growth
With the legal chapter closed, Samsung is expected to refocus on innovation and long-term strategy, particularly in the areas of semiconductors, AI chips, and digital infrastructure. The company’s stock rose 1.7% following the court’s decision, signaling investor confidence in a more stable future.
Yet, civil society groups remain critical. They argue that although the merger was ruled legal, it still disproportionately favored the Lee Jae-yong family. Concerns persist over corporate accountability, governance transparency, and protection for minority shareholders in chaebol-led economies like South Korea’s.
Despite the criticism, Samsung is now poised to navigate the next phase of its corporate evolution with Lee firmly at the helm—free of legal entanglements for the first time in over a decade.
