Samsung boss cleared over fraud case

Samsung boss Lee Jae-yong has been cleared of fraud charges, concluding a decade-long legal battle over his role in a 2015 merger deal.

Lee, the grandson of Samsung’s founder and the de facto head of the company since 2014, had been accused of using stock and accounting fraud to try to gain control of the firm.

In its final verdict, the South Korean Supreme Court upheld a not guilty verdict, after Lee was acquitted of all charges in two earlier trials.

The case drew widespread scrutiny of the technology giant, as the country grapples with corporate corruption scandals involving its powerful family-run conglomerates known as chaebols.

“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,” said Samsung’s lawyers on Thursday.

“We sincerely thank the court for its wise judgment following a thorough five-year trial process.”

Lee faced allegations of fraud in the wake of a merger that led to his succession as Samsung’s boss, after his father Lee Kun-hee suffered a heart attack and was left in a coma in 2014.

In 2024, a district court cleared Lee of all charges linked to the merger of two Samsung subsidiary companies worth $8bn (£5.97bn).

Lee was cleared again after prosecutors appealed the case in the High Court.

Legal battles over the past decade have added to Samsung’s troubles as it struggles with intensifying competition.