SEOUL, Feb 3 (Reuters) - Jay Y. Lee, Chairman of Samsung Electronics, was acquitted of accounting fraud and stock manipulation by a Seoul appeals court on Monday, potentially alleviating long-standing legal challenges associated with criminal cases.
The Seoul High Court affirmed the lower court's decision to dismiss all charges related to a 2015 merger aimed at solidifying Lee's control over the tech giant.
The legal disputes have been a distraction for Lee amid concerns about his leadership of Samsung Electronics, a major player in memory chips and smartphones, amid intensified competition and sluggish stock performance.
Commenting on the ruling, Lee's lawyer Kim You-jin stated, It took a long time. We hope with the latest ruling, the defendants would be able to focus on their work.
Over the years, Lee has faced various legal hurdles, including those stemming from the merger that paved the way for his succession following his father's incapacitation in 2014.
In a separate ruling, prosecutors sought a five-year jail term for Lee, linking the case to alleged accounting irregularities at Samsung BioLogics, but the High Court disagreed, emphasizing that the merger did not result in financial losses for Samsung C&T shareholders.
Lee, who maintains his innocence, refrained from answering reporters' questions as he left the court.
The court's decision drew criticism from a civic group, arguing that it displayed leniency towards Lee and neglected other court precedents related to the merger case.
Amid various legal and corporate governance challenges faced by Samsung, the business leader's ability to steer the conglomerate forward remains crucial, considering recent business setbacks.
Park Ju-gun, head of corporate analysis firm Leaders Index, noted that although the ruling is positive for Samsung, Lee will now need to demonstrate his management skills without the shadow of legal risks.
Samsung Electronics has encountered challenges in the market, struggling with AI chip sales and facing competition from rivals such as SK Hynix in the high-bandwidth memory chip sector linked to Nvidia's AI graphics processing units.