Samsung’s Lee Acquitted After Years of Prosecution

Samsung Electronics Chairman Lee Jae-yong was acquitted Thursday of all charges tied to a controversial merger and alleged financial fraud, ending a legal battle that stretched more than eight years. The Supreme Court upheld lower court rulings that found no evidence to support any of the 19 charges brought against him.

The court's decision marks the end of a major legal risk for Samsung, which had faced scrutiny since the 2016 political scandal involving former President Park Geun-hye. The ruling also clears 13 other defendants, including former Samsung Future Strategy Office head Choi Ji-sung.

The Supreme Court’s 3rd Division, presided over by Chief Justice Oh Seok-jun, dismissed the prosecution’s appeal on charges that included violations of the Capital Markets Act and the Act on External Audit of Stock Companies, as well as breach of trust. The court found no errors in how the lower courts evaluated evidence or interpreted the law. The rulings from the first trial in February and the second earlier this year, which acquitted all defendants, were confirmed.

Samsung's legal team said the decision affirmed that the 2015 merger between Cheil Industries and Samsung C&T, along with the accounting practices at Samsung Biologics, were lawful.

Prosecutors alleged that Lee and other executives manipulated stock prices and falsified financial statements to inflate the value of Cheil Industries, facilitating Lee’s succession as group leader. They claimed he received briefings from the Future Strategy Office and played a key role in coordinating the merger and accounting practices.

Business leaders welcomed the verdict. Kang Seok-gu, head of research at the Korea Chamber of Commerce and Industry, said the ruling not only removes a prolonged legal burden for Samsung but could also have a positive ripple effect on the broader South Korean economy.

In legal circles, some criticized prosecutors for pursuing the case to the Supreme Court despite earlier acquittals and recommendations to end the investigation.


송혜미기자 1am@donga.com