[News Space=Reporter seungwon lee] Samsung Electronics Chairman Lee Jae-yong has completely escaped the 'judicial risk' that has lasted for 10 years. On July 17, 2025, the 3rd Division of the Supreme Court (Chief Justice Oh Seok-jun) confirmed the original verdict of not guilty for Chairman Lee, who was indicted for the merger of Samsung C&T and Cheil Industries and the fraudulent accounting of Samsung BioLogics.

The Supreme Court upheld the not guilty verdicts of the first and second trials, stating that "there was no error in the original judgment that violated the rules of logic and experience, went beyond the limits of the principle of free judgment, or misunderstood the legal principles of the Capital Market Act, External Audit Act, etc."

Some of the evidence submitted by the prosecution was illegally collected, but crucially, 18 terabytes (TB) of server data and mobile phone messages were not recognized as evidence on the grounds that “the actual participation rights of the seized persons were not guaranteed.” Accordingly, the prosecution’s main charges—Samsung Group’s Future Strategy Office-led merger plan, stock price manipulation, and conspiracy to commit accounting fraud—were not legally proven.

With this ruling, all 13 defendants, including Samsung executives and Samjung Accounting Corporation, who were indicted together, were also found not guilty.

Liberation after 10 years… Samsung, free from legal risk, ‘drives’ global management

The chairman was indicted in September 2020 on charges of attempting to strengthen the group’s control and management rights by leading the merger of Cheil Industries and Samsung C&T in 2015. At the time, the prosecution claimed that the inflated value of Cheil Industries, the manipulation of Samsung C&T’s value decline, and Samsung BioLogics’ 4.5 trillion won fraudulent accounting were all unfair trade practices and accounting fraud for management succession.

The first and second trial courts declared the defendant not guilty, stating, “There is insufficient evidence for the prosecution’s claims of report manipulation, establishment of an unfair plan, and undue influence.” In particular, regarding the accounting fraud charge, the court ruled, “The accounting treatment is consistent with the economic reality of the parties’ judgment, and cannot be determined as an error of discretion.” In this way, all 23 charges were concluded as not guilty in the first, second, and third trials.

Immediately after the Supreme Court’s ruling confirming his innocence, the defense team for Chairman Lee stated, “Today’s final ruling by the Supreme Court clearly confirmed that the Samsung C&T merger and Samsung BioLogics accounting were legal.” They added, “We sincerely thank the court for its wise judgment after five years of diligent deliberation.”

Domestic and international business community: “Revival of management leadership… Long-term ripple effects expected”

The business community was delighted. The Korea Chamber of Commerce and Industry said, “Resolving management risks will have a positive ripple effect on the entire Korean economy,” and the Korea Employers Federation also evaluated, “Samsung Electronics’ role will grow even bigger amid fierce competition in the global high-tech industry.”

Samsung BioLogics and other affiliates of the group are also swept by expectations that they will be able to accelerate their global investment and expansion of new partnerships as the accounting treatment lawsuits that have continued since 2018 are resolved. In particular, BioLogics announced an all-out effort to secure future growth engines, such as expanding partnerships with global pharmaceutical companies in Boston, USA and Tokyo, Japan, and strengthening local sales networks.

Samsung Electronics Q2 2025 Earnings: The Stream of Crisis and Rebound

Meanwhile, Samsung Electronics recorded sales of KRW 74 trillion and operating profit of KRW 4.6 trillion on a consolidated basis in the second quarter of 2025. This is a 0.09% decrease in sales and a 55.94% plunge in operating profit compared to the same period last year. During the same period, the sluggish performance of advanced semiconductors such as HBM (high bandwidth memory) and the memory sector in the global market was the main factor in the decline in performance.

On his way back home after attending the Allen & Co. Media Conference in Sun Valley, Idaho, Chairman Lee Jae-yong made a brief statement to reporters, saying, “I will work hard,” and signaled a strong drive toward a future vision, including normal management and bold innovation in the semiconductor business after resolving legal risks.

'New Samsung' scenario… Overcoming crisis and accelerating new business

Samsung Electronics is currently facing several crises, including a stagnant recovery in memory demand, intensifying competition in the AI and semiconductor markets, negative external factors such as tariffs imposed by the U.S., and delays in large-scale M&A. However, with Chairman Lee’s acquittal, ownership leadership is expected to return in earnest, and a “New Samsung” innovation drive is expected, including active investment, discovery of new growth engines, and strengthened global cooperation.

This ruling is expected to be recorded by the Korean business community and investors as not only the fact that one businessman has been cleared of charges, but also as a signal for the resolution of Samsung Electronics' management uncertainty in the global market and its future growth.

A financial industry insider said, “Much of the prosecution’s evidence was collected illegally, and even the crucial physical evidence had problems with the seizure and search procedures and guarantee of the right to participate, which was acknowledged in the first, second, and third trials,” adding, “The end to Samsung’s judicial risk that has lasted for 10 years will also have significant implications for the governance structure of Korean companies and the global management environment.”