By Diplomacy Journal Lee Kap-soo

 

Samsung Electronics Executive Chairman Lee Jae-yong was cleared of all charges related to the alleged “illegal succession,” including the unfair merger of Samsung C&T and Cheil Industries and accounting fraud, on July 17, 2025.

 

According to the business and legal communities, the prosecution charged Lee and others, stating, “As vice chairman of the Samsung Group at the time, Lee illegally interfered in the merger process between Samsung C&T and Cheil Industries in 2015 to secure management succession and strengthen the group's control.” As a result, Lee and 14 other executives were referred to trial.

 

 

Lee was charged with a total of 19 counts under three charges, including violation of the Capital Markets Act, breach of trust in the course of business, and violation of the External Audit Act. However, all charges were dismissed in the final ruling by the Supreme Court on the same day.

 

This marks the first time in five years since the prosecution indicted Lee in September 2020 that all charges have been dropped.

 

Over the past five years, there have been more than 110 court hearings.

 

The first trial began in April 2021 and lasted for two years and ten months, with 107 hearings held until the first trial verdict was handed down in February 2023. Following the prosecution's appeal, the second trial began in February last year and held six hearings until the verdict was handed down in February this year.

 

The chairman attended a total of 102 hearings, including 96 in the first trial and 6 in the second trial.

 

 

Excluding the 11 times he was absent with court approval, such as attending an economic delegation during the President's state visit, he effectively attended every hearing without exception.

 

With the Supreme Court's ruling on that day, the chairman has completely escaped legal risks after 10 years.

 

He had been under investigation since 2016 for the “state affairs manipulation” scandal involving the Park Geun-hye administration and was arrested and indicted in February 2017. After serving a suspended sentence, being re-arrested, and being released on parole, the case was finally concluded on August 15, 2022, five years later, with a special pardon on Liberation Day.

 

Following this, Lee was again embroiled in allegations of illegal succession, and this case also concluded after five years. In total, legal risks that restricted his freedom of action persisted for 10 years.

 

During his final statement in court, Lee stated, “After being informed of the merger plans, I believed it would clearly benefit the future of both companies. I had no intention of harming shareholders or deceiving investors for personal gain.”

 

The business community anticipates that this ruling will reignite the stalled owner-led management of the Samsung Group.

 

Chairman Lee’s acquittal drew favorable responses from Korea’s business community.

 

Kang Seok-gu, research division head of the Korea Chamber of Commerce and Industry, said, “We welcome the Supreme Court’s ruling. Amid intensifying global competition in high-tech industries, the ruling is expected not only to resolve management risks for the group but also to have a positive effect on the entire Korean economy.”

 

Korea Enterprises Federation also said in a statement that the significance of Samsung Electronics’ role for the Korean industry is ever increasing and expressed hopes that Lee will spearhead efforts to discover new growth engines and create more jobs.