SEOUL, South Korea (AP) – On Thursday, October 5, 2023, South Korea’s Supreme Court upheld the acquittal of Samsung Electronics Chairman Lee Jae-yong, concluding an extended legal saga concerning financial criminal charges stemming from a controversial merger in 2015 that reinforced his control over the company. The ruling extinguished years of disputes regarding the legality of the merger between Samsung affiliates, which had significant implications for the conglomerate and its leadership structure.
In 2024, the Seoul Central District Court acquitted Lee of serious charges such as stock price manipulation and accounting fraud. The court ruled that prosecutors had not presented enough evidence to demonstrate that the merger was carried out unlawfully to bolster Lee's dominance over Samsung. Following the district court's decision, the Seoul High Court supported the ruling in February, which led to the Supreme Court's dismissal of the prosecutors' appeal on October 5, 2023. This Supreme Court ruling is final and cannot be contested further, marking a decisive conclusion to the legal challenges faced by Lee.
In response to the verdict, Samsung's legal representatives expressed gratitude towards the Supreme Court, stating that its ruling affirmed the legitimacy of the 2015 merger. They underscored their appreciation for what they termed a "wise" decision from the highest court in the country.
Lee Jae-yong, referred to as a third-generation corporate heir, officially assumed the role of chairman of Samsung Electronics in 2022, though he has been operating as the de facto leader of the Samsung group since 2014 after his father, Lee Kun-hee, suffered a debilitating heart attack. Lee Kun-hee passed away in 2020, thereby solidifying the transition of leadership to his son.
Prior to his acquittal, Lee had experienced significant legal turmoil, including a conviction in 2017 that resulted from separate bribery charges linked to the same 2015 merger. He was originally sentenced to five years in prison for reportedly offering bribes to then-President Park Geun-hye and her close associate to secure government support for the merger, which was pivotal in consolidating his power within the Samsung empire and ensuring a seamless leadership transition from father to son.
Lee Jae-yong served an 18-month prison sentence following his conviction but was paroled in 2021. In 2022, he was granted a presidential pardon by then-President Yoon Suk Yeol, which effectively reinstated his ability to lead the corporate giant without legal encumbrances hanging over his position.
Despite the Supreme Court's ruling, the 2015 merger has been met with opposition from certain shareholders. Critics have voiced concerns that the merger disproportionately benefited the Lee family while adversely impacting minority shareholders. This highlighted ongoing tensions within corporate governance in South Korea, particularly regarding familial control over large conglomerates.
As the conclusion to this extensive legal battle unfolds, it raises significant questions about corporate ethics, governance, and the broader implications of familial control in South Korean businesses. Lee Jae-yong's case will likely remain a focal point of discussion in the realm of corporate regulation and accountability in South Korea.
