South Korean appeals court upholds acquittal of Samsung chief Lee

A South Korean appeals court has upheld a lower court’s ruling that acquitted Samsung Electronics Chairman Lee Jae-yong of financial criminal charges over a contentious merger between Samsung affiliates that cemented his grip over the biggest South Korean company.

The Seoul High Court rejected an appeal by prosecutors.

You Jin Kim, Mr Lee’s lawyer, welcomed the ruling, saying he hopes that Mr Lee would now focus on his company following Monday’s verdict.

Prosecutors can again appeal to the Supreme Court, whose rulings are final.

In February 2024, the Seoul Central District Court said the prosecution failed to sufficiently prove the merger between Samsung C&T and Cheil Industries was unlawfully conducted with an aim to strengthen Mr Lee’s control over Samsung Electronics.

Mr Lee, a third-generation corporate heir who was officially appointed chairman of Samsung Electronics in October 2022, has led the Samsung group of companies since 2014, when his late father, former chairman Lee Kun-hee, suffered a heart attack.

Lee Jae-yong served 18 months in prison after being convicted in 2017 over separate bribery charges related to the 2015 deal.

He was originally sentenced to five years in prison for offering bribes to then-President Park Geun-hye and her close confidante to win government support for the 2015 merger, which was key to strengthening his control over the Samsung business empire and solidifying the father-to-son leadership succession.

Mr Lee was released on parole in 2021, and pardoned by South Korean President Yoon Suk Yeol in August 2022.

Some shareholders had opposed the 2015 merger, saying it unfairly benefited the Lee family while hurting minority shareholders.