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View all search resultsSouth Korea's top court clears Samsung Chairman Lee in 2015 merger fraud case
The Supreme Court's verdict permanently removes a long-running legal distraction for Lee as Samsung plays catch-up in a global race to develop cutting-edge AI chips.
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Jay Y. Lee, Executive Chairman of Samsung Electronics Co., arrives for the State Dinner in honor of then South Korean President Yoon Suk Yeol, at the White House in Washington, DC, US on April 26, 2023. (AFP/Stefani Reynolds)
S
outh Korea's top court upheld on Thursday a not-guilty verdict for the chairman of Samsung Electronics Jay Y. Lee, backing two lower court rulings clearing him of accounting fraud and stock manipulation related to an $8 billion merger in 2015.
The Supreme Court's verdict permanently removes a long-running legal distraction for Lee as Samsung plays catch-up in a global race to develop cutting-edge AI chips.
The verdict upheld an appeals court's ruling dismissing all the charges in the case involving the merger a decade ago between two Samsung affiliates, Samsung C&T and Cheil Industries, which prosecutors said was designed to cement Lee's control of the tech giant.
A lower court last year had also cleared Lee of the charges.
"The Supreme Court ruling clears a layer of legal uncertainty, which could be a long-term positive for Samsung," said Ryu Young-ho, a senior analyst at NH Investment & Securities.
"It remains to be seen how directly and proactively he will engage going forward, but if the owner takes a more active role, it could allow management to focus more on long-term initiatives rather than short-term results," Ryu added.
Samsung Electronics shares were little changed after the ruling, up 1.7 percent.
The Supreme Court verdict was widely expected, but comes at a critical moment for Lee, who has faced mounting questions about his ability to lead Samsung Electronics - the world's top memory chip and smartphone maker.
Samsung's lawyers said they were "sincerely grateful" to the court for its decision and added in a statement that the ruling confirmed that the merger was legal.
Business lobby groups welcomed the court's decision, framing it as a stabilizing development for the South Korean economy.
The Korea Enterprises Federation said the ruling removes a major legal burden for Samsung and comes at a time of intensifying global competition in high-tech industries like AI and semiconductors as well as economic pressure from US trade tariffs.
"Samsung's role as a leading South Korean company is more critical than ever," the group said in a statement.
The group said it hoped Samsung, under Lee's leadership, would step up investment and innovation, helping to create jobs and bolster South Korea’s economic rebound.
For nearly a decade, Lee has faced legal challenges, including those from the merger that paved the way for his succession after his father, Lee Kun-hee, had a heart attack in 2014 that left him in a coma.
Park Ju-gun, head of corporate analysis firm Leaders Index, said Lee now faces dual challenges of tightening his grip on the conglomerate while steering Samsung back to leadership in key sectors.
"He must both defend Samsung’s core businesses and find new growth engines, all while consolidating his control," Park said.
