Lee Jae-Yong, the de facto leader of Samsung, was in President Yoon’s administration, all fraud charges against him were dropped. These accusations were directly tied to the troublesome $8 billion merger between two Samsung affiliates. The Supreme Court’s ruling, delivered on October 25, 2024, followed a comprehensive five-year legal battle that scrutinized the merger’s legality and its implications for Lee’s succession as head of the global tech giant.
The case against Lee has mainly focused on accusations of illegal stock manipulation and accounting fraud techniques. These moves were apparently made in order to consolidate his power over Samsung, after his father, Lee Kun-hee, had a heart attack and was declared comatose in 2014. The merger also combined subsidiaries Samsung C&T and Samsung Biologics. This strategic maneuver was instrumental in Lee’s ascension to the company’s decision-making summit.
Lee, the grandson of that same founder of Samsung, himself was recently acquitted of all corruption charges by a South Korean district court. Now, prosecutors are seeking to reverse that ruling in the High Court. The decision by the nation’s highest court reaffirmed a lower court ruling. This ruling upheld the merger’s legality and rejected the fraud claims.
Samsung’s legal team released a statement thanking the judge for the ruling, noting the judicial process can be complicated and detail-oriented.
“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,” – Samsung’s lawyers.
“We sincerely thank the court for its wise judgment following a thorough five-year trial process.” – Samsung’s lawyers.
The Supreme Court’s ruling is a huge victory for Lee and Samsung. It allows Lee to continue his authoritarian rule without any pesky legal accountability. Since 2014, however, Lee has assumed the role of de facto leader. He has shrewdly steered the company through difficult waters, including corporate bankruptcy and intense competition from abroad.
To ensure that Samsung’s aggressive expansion continues forward, this merger is critical. Its goal is to solidify its competitive advantage in different markets. With this legal victory, Lee can now focus on steering Samsung toward future innovations and maintaining its status as a leader in technology.