Samsung Electronics Chairman free of all legal troubles; what next?

An almost decade long court battle against the executive chairman of Samsung Electronics has come to an end today, with the Supreme Court freeing Lee Jae-yong of all legal troubles.

Our business correspondent Kim Do-yeon reports.

After nearly a decade of legal battles, Samsung Electronics Executive Chairman Lee Jae-yong is now officially free of all charges.

On Thursday, South Korea's Supreme Court upheld a lower court ruling acquitting the Samsung Chairman of fraud and market manipulation.

The case centered on a controversial 2015 merger between Samsung C&T and Cheil Industries — a deal that helped Lee cement control over Samsung Electronics, despite not owning direct shares.

The merger came as Lee was in the midst of inheriting leadership from his now-late father, Lee Kun-hee.

Prosecutors argued the merger unfairly favored Cheil, where Lee was the largest shareholder.

But the top court ruled there was insufficient evidence that the deal or the related accounting practices violated the law.

Lee's legal woes began in 2016 with a bribery case linked to former impeached President Park Geun-hye.

He served a total of 18 months in prison over the course of four years until 2021 and was barred from holding an official role at Samsung for five years following his release from prison.

That ban was lifted early after a presidential pardon in 2022 by then-President Yoon Suk Yeol, paving the way for his formal return to Samsung leadership.

Despite rejoining the company, Lee remained entangled in the ongoing merger case, making frequent court appearances.

His legal team celebrated an appeals court acquittal in February 2025 and famously left this comment.

"I hope this decision leads to the defendant returning and concentrating on their work."

Lee's freedom from legal issues comes as Samsung Electronics has recently faced mounting headwinds.

Its operating profit for the second quarter was slashed in half year-on-year, dragged down by weakness in its key semiconductor business, which accounts for more than half of total profits.

Pundits say the legal issues didn't help and kept the company as a whole from making risky and bold decisions.

"But it's a little bit hard to get in the front line with the legal issues going on so I think that this gives a great signal both to the market and within Samsung that Samsung will excel their AI and, you know, semiconductor strategies."

But now, at least, the man at the top is no longer looking over his shoulder — and that may mark a turning point for South Korea's biggest conglomerate.

Kim Do-yeon, Arirang News.