Samsung chief Lee Jae-yong is acquitted of financial crimes related to 2015 merger
Seoul, Feb 5: A South Korean court on Monday acquitted Samsung Electronics Chairman Lee Jae-yong of financial crimes involving a contentious merger between Samsung affiliates in 2015 that tightened his grip over South Korea's biggest company.
The ruling by the Seoul Central District Court could ease the legal troubles surrounding the Samsung heir less than two years after he was pardoned of a separate conviction of bribery in a corruption scandal that toppled a previous South Korean government.
The 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 Lee's control over Samsung Electronics.
Prosecutors had sought a five-year jail term for Lee, who was accused of stock price manipulation and accounting fraud. It wasn't immediately clear whether they would appeal. Lee had denied wrongdoing in the current case, describing the 2015 merger as "normal business activity."
Lee, 56, did not answer questions from reporters as left the court. You Jin Kim, Lee's lawyer, praised the court for confirming that the merger was legal.
Lee, a third-generation corporate heir who was officially appointed as the 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 for five years in prison for offering 8.6 billion won (6.4 million) worth of 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.
Lee was released on parole in 2021 and pardoned by South Korean President Yoon Suk Yeol in August 2022, in moves that extended a history of leniency toward major white-collar crime in South Korea and preferential treatment for convicted tycoons.
Some shareholders had opposed the 2015 merger, saying that it unfairly benefited the Lee family while hurting minority shareholders. There was also public anger over how the national pension fund's stake in Samsung C&T, the merged entity, fell by an estimated hundreds of millions of dollars, after Park had pressured the National Pension Service to support the deal.
Park and her confidante were also convicted in the scandal and enraged South Koreans staged massive protests for months demanding an end to the shady ties between business and politics. The demonstrations eventually led to Park's ouster from office.
Lee has been navigating one of his toughest stretches as the leader of one of the world's largest makers of computer chips and smartphones, with Russia's war on Ukraine and other geopolitical turmoil hurting the world economy and deflating technology spending.
The company last week reported an annual 34% decline in operating profit for October-December quarter as sluggish demands for its TVs and other consumer electronics products offset hard-won gains from a slowly revering memory chip market.
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Deep societal faultlines persist despite 75 years of independence: Justice Ujjal Bhuyan
Judge cites denial of home to Muslim girl, opposition to Dalit women cooking mid-day meals
Hyderabad, February 23, 2026: Supreme Court judge Justice Ujjal Bhuyan has said that despite repeated affirmations of constitutional morality by courts, deep societal faultlines rooted in caste and religious discrimination continue to shape everyday realities in India.
Speaking at a seminar on “Constitutional Morality and the Role of District Judiciary” organised by the Telangana Judges Association and the Telangana State Judicial Academy in Hyderabad, Justice Bhuyan reflected on the gap between constitutional ideals and social practices.
He cited a recent instance involving his daughter’s friend, a PhD scholar at a private university in Noida, who was denied accommodation in South Delhi after her surname revealed her Muslim identity. According to Justice Bhuyan, the landlady bluntly informed her that no accommodation was available once her religious background became known.
In another example from Odisha, he referred to resistance by some parents to the government’s mid-day meal programme because the food was prepared by Dalit women employed as cooks. He noted that some parents had objected aggressively and refused to allow their children to consume meals cooked by members of the Scheduled Caste community.
Describing these incidents as “the tip of the iceberg,” Justice Bhuyan said they reveal how far society remains from the benchmark of constitutional morality even 75 years into the Republic. He observed that while the Constitution lays down standards of equality and dignity, the morality practised within homes and communities often diverges sharply from those values.
He emphasised that constitutional morality requires governance through the rule of law rather than the rule of popular opinion. Referring to the evolution of the doctrine through judicial decisions, he cited Naz Foundation v Union of India, in which the Delhi High Court read down Section 377 of the Indian Penal Code, holding that popular morality cannot restrict fundamental rights under Article 21. Though the judgment was later overturned in Suresh Kumar Koushal v Naz Foundation, the Supreme Court ultimately restored and expanded the principle in Navtej Singh Johar v Union of India, affirming that constitutional morality must prevail over majoritarian views.
“In our constitutional scheme, it is the constitutionality of the issue before the court that is relevant, not the dominant or popular view,” he said.
Justice Bhuyan also addressed the functioning of the district judiciary, underlining that trial courts are the first point of contact for most litigants and form the foundation of the justice delivery system. He stressed that due importance must be given to the recording of evidence and adjudication of bail matters.
Highlighting the role of High Courts, he said their supervisory jurisdiction under Article 227 of the Constitution is intended as a shield to correct grave jurisdictional errors, not as a mechanism to substitute the discretion or factual appreciation of trial judges.
He recalled that several distinguished judges, including Justice H R Khanna, Justice A M Ahmadi, and Justice Fathima Beevi, began their careers in the district judiciary.
On representation within the judicial system, Justice Bhuyan noted that Telangana has made significant strides in gender inclusion. Out of a sanctioned strength of 655 judicial officers in the Telangana Judicial Service, 478 are currently serving, of whom 283 are women, exceeding 50 per cent representation. He added that members of Scheduled Castes, Scheduled Tribes, minority communities, and persons with disabilities are also represented in the state’s judiciary.
He observed that greater representation of women, marginalised communities, persons with disabilities, and sexual minorities would help make the judiciary more inclusive and reflective of India’s diversity. “The judiciary must represent all the colours of the rainbow and become a rainbow institution,” he said.
Justice Bhuyan also referred to the recent restoration by the Supreme Court of the requirement of a minimum three years of practice at the Bar for entry-level judicial posts. While acknowledging that the requirement ensures practical exposure, he cautioned that its impact on women aspirants, especially those from rural or small-town backgrounds facing social and financial constraints, would need to be carefully observed over time.
Concluding his address, he reiterated that the justice system must strive to bridge the gap between constitutional ideals and lived realities, ensuring that the rule of law remains paramount.
