17.07.2025 15:20

South Korea's Supreme Court delivered a resounding acquittal for Samsung Electronics Chairman Jay Y. Lee on Thursday, dismissing long-standing allegations of accounting irregularities and market manipulation related to an $8 billion merger finalized in 2015. This unanimous decision, affirming a previous appeals court ruling, concludes a nearly decade-long legal battle that has cast a significant shadow over Lee's leadership.

The ruling allows Lee, grandson of Samsung's founder and its effective leader since 2014, to fully focus on Samsung's ambitious goal of becoming a major player in the fiercely competitive artificial intelligence chip market. The news was met with jubilation by Samsung investors and its legal team alike.

Samsung's lawyers expressed their profound relief and gratitude in a statement. They emphasized the Supreme Court's definitive declaration that both the merger between Samsung C&T and Cheil Industries – the heart of the legal dispute – and the associated accounting practices were entirely legitimate. The statement concluded by expressing sincere thanks to the court for its thorough and impartial review spanning five years.

This is not the first time Lee has been exonerated. Previous trials also dismissed fraud accusations against him. Last year, a lower court rejected charges that he orchestrated the merger to consolidate his family's control over the tech giant, finding no evidence of illegal activity despite prosecutors’ claims of unfair power consolidation.

The positive legal resolution significantly impacted investor sentiment. Samsung's stock price surged over 3% by the end of Thursday's trading session, outperforming the relatively stagnant KOSPI index. Analysts attribute this rise to both the newfound legal clarity and a shift in investment funds following Goldman Sachs' downgrade of competitor SK Hynix, whose shares consequently plummeted by almost 10%.