Chairman Lee Jae-yong, Samsung is maintaining a strict silence, underscoring the high stakes of a case that has shadowed the group. (Image courtesy of Yonhap)
SEOUL, July 17 (Korea Bizwire) — On the eve of a pivotal Supreme Court ruling concerning Chairman Lee Jae-yong, Samsung is maintaining a strict silence, underscoring the high stakes of a case that has shadowed the group for nearly a decade.
South Korea’s Supreme Court is set to deliver its final verdict on Thursday on charges of unlawful merger and accounting fraud against Lee, stemming from the controversial 2015 merger between Cheil Industries and Samsung C&T. Prosecutors allege the merger was orchestrated to consolidate Lee’s control over the group through price manipulation and unfair trading. He was indicted in 2020.
Lower courts cleared Lee of the charges in 2023 and 2024. Now, expectations are cautiously rising that the Supreme Court may affirm the lower courts’ acquittals. Nevertheless, Samsung is refraining from any speculation, reflecting deep-rooted concerns within the conglomerate about the lingering legal uncertainty.
The case is a continuation of a nearly decade-long judicial saga for Lee, who was also convicted and imprisoned in connection with the 2017 political scandal involving former President Park Geun-hye. Critics argue that these legal battles have severely constrained Samsung’s capacity for bold strategic moves, particularly in major mergers and acquisitions.
Since its $8.3 billion acquisition of Harman in 2017, Samsung had largely held back on large-scale deals. But recent acquisitions—including U.S.-based Massimo’s audio division and German HVAC firm FläktGroup—signal a possible revival in dealmaking, particularly after Lee’s second acquittal.
Lee himself has resumed high-profile global engagements this year, meeting Chinese President Xi Jinping, visiting Japan, and attending the exclusive Sun Valley Conference in the U.S., where he reportedly explored AI collaboration and new growth ventures.
Still, Samsung faces mounting challenges in its core semiconductor business. The company’s Q2 operating profit recently dipped below 5 trillion won for the first time in six quarters, while its foundry unit continues to lag behind Taiwan’s TSMC, and its high-bandwidth memory (HBM) products are yet to secure key clients like Nvidia.
Analysts also point to unresolved issues in corporate governance reform, including the elimination of circular shareholdings and bolstering compliance frameworks.
“This verdict could be a critical turning point for Samsung,” said one industry insider. “With legal uncertainties cleared, the group can begin to confront head-on the structural and strategic hurdles threatening its future competitiveness.”
M. H. Lee (mhlee@koreabizwire.com)
