Samsung Electronics Chairman Lee Jae-yong was acquitted on Monday in his appeal trial over charges of stock manipulation and accounting fraud linked to the 2015 merger of two key Samsung affiliates. The Seoul High Court upheld a lower court’s ruling that found no legal wrongdoing in the merger of Samsung C&T and Cheil Industries, rejecting prosecution claims that the deal was engineered to strengthen Lee’s control over the country’s largest conglomerate. Thirteen other Samsung executives who faced related charges were also cleared.

The ruling ends years of legal scrutiny over the 2015 merger. Prosecutors had argued that Samsung intentionally undervalued Samsung C&T while inflating Cheil Industries’ worth to benefit Lee. The deal, which faced opposition from activist investors, including Elliott Investment Management, was controversially approved with backing from South Korea’s National Pension Service.

WHY IT MATTERS 

Lee’s acquittal removes a major legal barrier that had clouded Samsung’s leadership and decision-making. With his control over the conglomerate now uncontested, Samsung can accelerate long-term investments without concerns over leadership uncertainty. The ruling also signals to global investors that South Korea’s judiciary remains business-friendly, which could support market confidence in chaebol-led industries.

With legal constraints lifted, Samsung will likely shift its focus toward semiconductor and mergers and acquisitions strategies. The company has been trailing SK Hynix in high-bandwidth memory chips, which are crucial for artificial intelligence (AI) processing. Monday’s ruling clears the way for aggressive investment in research and development and potential acquisitions. Samsung, which has amassed over $79 billion in cash reserves, is now expected to explore further AI partnerships, semiconductor materials and packaging technologies to close the gap with its rivals.

Samsung’s total assets account for about 20% of South Korea’s GDP. A renewed push by the company into high-tech sectors could spur job creation and boost the country’s competitiveness in AI and semiconductor manufacturing. However, the ruling comes as U.S. President Donald Trump signals plans to impose tariffs on foreign-made chips “in the very near future,” which could disrupt Samsung’s global semiconductor exports.