In a major legal win for Samsung Electronics Chairman Jay Y. Lee, a Seoul appeals court on Monday cleared him of accounting fraud and stock manipulation charges. The decision could finally put an end to years of legal troubles that had cast a shadow over his leadership.
The case stemmed from a controversial 2015 merger between two Samsung affiliates, which prosecutors claimed was designed to solidify Lee’s control over the company. However, the court found no evidence of wrongdoing, echoing an earlier verdict from a lower court.
Lee’s lawyer expressed relief, saying the ruling allows him to focus on steering Samsung through tough times. The tech giant has been struggling with stiff competition and disappointing stock performance, making Lee’s leadership all the more critical.
The legal saga dates back nearly a decade, when Lee’s father fell ill, paving the way for his succession. Despite spending 18 months in jail on unrelated bribery charges, Lee was pardoned in 2022 to help tackle South Korea’s “national economic crisis.”
The merger had sparked outrage among investors, including U.S. hedge fund Elliott, which accused Samsung of prioritizing family interests over shareholders. The National Pension Service even sued Lee for damages, claiming the merger undervalued its stake in Samsung C&T.
While the verdict is a win for Lee, critics argue it sets a worrying precedent for corporate governance in South Korea’s family-owned conglomerates. Meanwhile, Samsung faces new challenges, like lagging behind competitors in the AI chip market.
With the legal cloud lifted, all eyes are now on Lee to prove he can lead Samsung back to the top.