Samsung boss Lee Jae-yong cleared of fraud charges

In a landmark decision, Samsung Electronics Chairman Lee Jae-yong has been cleared of all fraud charges by South Korea’s Supreme Court, bringing an end to a long legal battle.

The verdict upholds earlier acquittals, concluding a contentious case centred on a 2015 merger deal and allegations of stock and accounting fraud.

Lee, the grandson of Samsung’s founder and the company’s leader since 2014, had faced accusations of inflating the value of Samsung Biologics, a pharmaceutical affiliate, through fraudulent accounting.

Prosecutors argued that this manipulation aimed to increase his stake in a crucial Samsung subsidiary during the 2015 merger, thereby solidifying his control over the vast conglomerate and ensuring his succession from his ailing father, Lee Kun-hee.

Samsung’s legal team welcomed the ruling on Thursday, stating: “Today, the Supreme Court has clearly confirmed through its final ruling that the merger of Samsung C&T and the accounting treatment of Samsung Biologics were lawful. We sincerely thank the court for its wise judgment following a thorough five-year trial process.”

This case has drawn significant international attention, shedding light on corporate governance and corruption within South Korea’s powerful family-run conglomerates, known as “chaebols.” Lee’s legal troubles have been extensive, including a separate bribery conviction in 2021.

The final acquittal comes at a critical time for Samsung, which has grappled with intensifying global competition and declining sales in key sectors such as smartphones and computer chips.

The country’s business community has largely welcomed the decision, with the Federation of Korean Industries stating that the ruling will enable swift decision-making at Samsung’s helm, crucial for navigating ongoing trade complexities, including those with the US.

Lee Jae-yong himself acknowledged during a recent trial that Samsung faces unprecedented challenges, pledging to “overcome and take a step forward.”

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