Seoul, South Korea — Lee Jae-yong, the head of Samsung, has been exonerated of fraud allegations by the country’s highest court, finalizing a protracted legal battle that has drawn attention to South Korea’s corporate governance issues. The Supreme Court’s ruling concluded years of scrutiny regarding Lee’s role in a significant merger involving Samsung’s subsidiaries.

As the de facto leader of Samsung since 2014 and the grandson of the company’s founder, Lee faced accusations that he engaged in stock manipulation and accounting fraud to consolidate control of Samsung following the health decline of his father, Lee Kun-hee, who suffered a heart attack in 2014 and passed away in 2020. The case raised questions about the ethical practices of chaebols—South Korea’s large family-owned conglomerates—and their impact on the economy.

In a statement following the verdict, legal representatives for Samsung emphasized the court’s affirmation of the legality of the merger between Samsung C&T and Samsung Biologics, which was valued at approximately $8 billion. The lawyers expressed gratitude for what they described as a wise judgment following a comprehensive five-year process.

Lee’s legal troubles began in 2017 when he was arrested on bribery charges linked to efforts to gain governmental support for the merger. Throughout the legal proceedings, Lee endured various setbacks, including a stint in prison that was cut short by a presidential pardon aimed at bolstering economic recovery during the COVID-19 pandemic.

In 2024, a district court acquitted him of all charges connected to the merger. This decision was reaffirmed by the High Court following a prosecutor’s appeal, marking a significant victory for Lee in a turbulent chapter for the company.

Samsung’s struggles have been compounded by increasing global competition and lackluster stock performance, highlighting broader challenges within the South Korean corporate landscape. The outcome of Lee’s legal battles appears to signal a cautious return to stability for the conglomerate as it navigates the complexities of the modern business environment.