South Korea's top court clears Samsung Chairman Lee in 2015 merger fraud case
The Supreme Court upheld an appeals court's ruling dismissing all charges in the case involving an $8 billion merger in 2015, freeing Lee to focus on Samsung's push to catch up in a global race to develop cutting-edge AI chips.
A lower court last year had also cleared Lee of the charges relating to a deal between two Samsung affiliates, Samsung C&T (028260.KS), opens new tab and Cheil Industries, which prosecutors said was designed to cement Lee's control of the tech giant.
"The Supreme Court ruling clears a layer of legal uncertainty, which could be a long-term positive for Samsung," said Ryu Young-ho, a senior analyst at NH Investment & Securities.
"It remains to be seen how directly and proactively he will engage going forward, but if the owner takes a more active role, it could allow management to focus more on long-term initiatives rather than short-term results," Ryu added.
Samsung Electronics shares closed up 3.1%, outperforming a near-flat benchmark KOSPI (.KS11), opens new tab.
Analysts attributed the rise to the removal of legal uncertainty surrounding Samsung, as well as investors switching to the company after Goldman Sachs downgraded local rival SK Hynix (000660.KS), opens new tab, sending its shares down as much as 9.5%.
The Supreme Court verdict was widely expected, but comes at a critical moment for Lee, who has faced mounting questions about his ability to lead Samsung Electronics - the world's top memory chip and No.2 smartphone maker.
Samsung's lawyers said they were "sincerely grateful" to the court for its decision and added in a statement that the ruling confirmed that the merger was legal.
For nearly a decade, Lee has faced legal challenges, including those from the merger that paved the way for his succession after his father, Lee Kun-hee, had a heart attack in 2014 that left him in a coma.
Business lobby groups welcomed the court's decision, framing it as a stabilising development for the South Korean economy.
The Korea Enterprises Federation said the ruling removes a major legal burden for Samsung and comes at a time of intensifying global competition in high-tech industries like AI and semiconductors as well as economic pressure from U.S. trade tariffs.
"Samsung's role as a leading South Korean company is more critical than ever," the group said in a statement.
The group said it hoped Samsung, under Lee's leadership, would step up investment and innovation, helping to create jobs and bolster South Korea's economic rebound.
Lee, 57, spent 18 months in jail for bribery in a separate case related to former President Park Geun-hye, but was pardoned by then-President Yoon Suk Yeol, with the Justice Ministry citing a need for the billionaire businessman to help overcome a national economic crisis.
The family-run conglomerates - or chaebols - have long been revered for helping transform South Korea into a global economic powerhouse, but also criticised for opaque dealings and for stifling small businesses and start-ups.
Earlier this month, Samsung projected a worse-than-expected 56% plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business.
Park Ju-gun, head of corporate analysis firm Leaders Index, said Lee now faces dual challenges of tightening his grip on the conglomerate while steering Samsung back to leadership in key sectors.
"He must both defend Samsung's core businesses and find new growth engines, all while consolidating his control," Park said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ITV News
11 minutes ago
- ITV News
Brother of murder victim dies days after PSNI chief hand-delivers apology
A man who campaigned for answers over the murder of his brother has died days after receiving a police Thompson died in the Mater Hospital in Belfast this week, PSNI Chief Constable Jon Boutcher delivered a personal apology at his bedside over police failings around the murder of his brother Paul by loyalist terrorists in 1994. Paul Thompson, 25, died after being shot while in a taxi in the area of Springfield Park on his way that evening, UDA terrorists are believed to have cut a hole in a peace line fence to access the area which was reported to police. In his apology Mr Boutcher acknowledged failures by police and said the murder has not been the subject of a full and effective investigation. In a statement the Committee on the Administration of Justice in Northern Ireland say Eugene died without truth or justice for what happened to his brother Paul. They added they will continue to fight for Fein MP Paul Maskey expressed his condolences following the death of Eugene said: 'Eugene, alongside his family, led a brave and dignified campaign to uncover the full extent of Paul's sectarian murder and the role the British state played in it.'Shamefully, the British government continues to conceal this, denying Eugene's family, and so many others, even the most basic justice.'Just last week, Chief Constable Jon Boutcher delivered a letter to Eugene Thompson as he lay terminally ill in the Mater Hospital.'Mr Maskey added: 'This was testament to Eugene's character, determined right to the end to see justice for Paul.'The UK Government has launched a legal bid at the Supreme Court to prevent coroner Louisa Fee from disclosing a summary, or gist, of the evidence in a sensitive security force file following an inquest into Paul Thompson's death.A ruling has not yet been week, Eugene Thompson welcomed the apology from Mr Boutcher, and said he hoped to see the judgment from the Supreme Court soon. In a statement the Committee on the Administration of Justice (CAJ) said: "It is with deep sadness that we acknowledge the passing of Eugene Thompson, brother of Paul 'Topper' Thompson, who was shot dead by the UDA in Belfast in August 1994. "Eugene died without ever seeing the disclosure of the intelligence material relevant to his brother's inquest. He died without hearing the Supreme Court judgment. "Most tragically, he died without truth or justice for what happened to Paul. "Eugene spent the final years of his life leading his family's campaign for truth, following in the footsteps of his late mother Margaret, who also passed away without answers. "He fought with determination and dignity, even while gravely ill and facing continued institutional resistance. "That he has died while the case remains unresolved is a profound injustice which should weigh heavily on those responsible for the persistent delays, obstruction and legal challenges that have defined this process."Only last week, the PSNI Chief Constable issued a formal apology to Eugene in recognition of the failings of both the RUC and PSNI in the handling of Paul's case. "While no apology can undo the harm, it was right that Eugene received this acknowledgment during his lifetime. "At the heart of this legal battle is whether Paul Thompson's family is entitled to even the most limited information, a gist, about the intelligence the State holds on his death. "The highest authorities in this jurisdiction agreed the information should be shared. The High Court and Court of Appeal ruled in favour of disclosure. The PSNI, under Jon Boutcher, supported this ruling. "However, the UK government, through the Secretary of State, Ministry of Defence and Home Office, chose to appeal. The Supreme Court heard the case in June and has not yet issued a ruling. "These delays continued despite the government being fully aware of Eugene's terminal illness. "Eugene's death underscores the human cost of a system designed not to deliver answers, but to delay and deny them. "Like so many others, Eugene encountered a government more committed to secrecy than to justice. "Despite this, he remained resolute in his pursuit of truth, not only for Paul but for all families who have suffered from the State's failure to protect its citizens and its ongoing refusal to be held to account. "This case sits within the broader context of the UK Government's Legacy Act and its deeply flawed new structures, including the ICRIR, which aim to shut down independent legal processes and shield the State from scrutiny."RFJ and CAJ extend our deepest sympathies to Eugene's loved ones, especially Briege. We also reaffirm our support for all families still seeking truth, justice and accountability. Eugene should not have had to fight this long, and he should not have died without answers."We will continue that fight in his name and in memory of all those who have been silenced not by time, but by deliberate delay." Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.
Reuters
12 minutes ago
- Reuters
India regulator seeks trading data from exchanges in wider Jane Street probe, sources say
MUMBAI, July 30 (Reuters) - India's markets regulator has asked stock exchanges to share detailed data of trading by U.S. brokerage Jane Street across all indexes from January 2023 to May 2025, two sources with direct knowledge of the matter told Reuters, formally widening its probe into alleged market manipulation. The Securities and Exchange Board of India (SEBI) had on July 4 barred Jane Street from trading in Indian markets, alleging the firm manipulated stock indexes through its derivatives positions. Jane Street has since deposited $567 million in an escrow account, representing what SEBI termed "unlawful gains," in a bid to resume trading while reserving its legal rights. The firm has denied the allegations and called the trades basic arbitrage. The regulator's latest request, sent to exchanges on July 11, seeks mark-to-market profits, long and short positions of Jane Street group entities, and data for all expiry days of derivatives contracts, the sources said, declining to be named as the discussions are private. BSE - formerly the Bombay Stock Exchange - has been asked to share data related to its indexes of top 30 stocks and banking stocks, while National Stock Exchange of India (NSE) has been asked for information on indexes tracking the top 50 stocks and financial services firms, they added. A BSE spokesperson declined to comment. SEBI, NSE, and Jane Street did not immediately respond to Reuters' queries. "More data is being analysed as part of a planned widening of investigations," one of the sources said, adding that six entities under the banner are being examined currently. The letter followed a July 10 meeting where SEBI asked exchanges to look for trading patterns similar to those flagged in its interim order, the second source said. In that order, SEBI had focused on Jane Street's trades in NSE's banking index. The order said the firm had bought large quantities of stock in constituents of the Bank Nifty (.NSEBANK), opens new tab index, in both the cash and futures markets, during morning trade to artificially support the index, while simultaneously building large short positions in index options. The firm later reversed the trades to profit from the options, it added.
Reuters
12 minutes ago
- Reuters
Hyundai India shrugs off China's rare-earth ban; quarterly profit tops view
July 30 (Reuters) - Hyundai Motor India ( opens new tab posted a better-than-expected quarterly profit on Wednesday on the back of strong exports and downplayed concerns over China's rare-earth magnet export ban, saying its current stockpile is sufficient to handle any near-term disruptions. Carmakers in India - the world's third-largest auto market - are boosting exports to offset slowing local sales, tighter margins and rising discounts, even as China's rare-earth export ban looms over EV supply chains. However, Hyundai's manufacturing head Gopalakrishnan C S said in a post-earnings conference call said the company remains unaffected by the ban for now, with adequate inventory. "(With) rare earth as such, we are not facing any issue. We (have) adequate inventory for the near term already," he said. While profit declined 8% to 13.69 billion rupees ($156.7 million) in the three months to June 30, it topped analysts' estimate of 12.59 billion rupees, according to data compiled by LSEG. A 13% rise in exports helped cushion a 6% drop in quarterly sales, and the automaker expects overseas shipments to grow 7%–8% this fiscal year. Managing Director Unsoo Kim said he expects the momentum to continue, with exports making up 27% of first-quarter sales and a 30% share targeted for the full year. In the quarter, domestic sales fell 12%. Its June-quarter revenue fell 5.4% to 164.13 billion rupees, while expenses dropped 5%. Shares, up 8% since listing in October 2024, closed 0.7% lower on Wednesday. The Indian unit of South Korea's Hyundai Motor ( opens new tab, like several of its peers, is banking on the upcoming festive season and easing interest rates to revive flagging domestic demand. Rival Mahindra and Mahindra ( opens new tab reported a better-than-expected rise in quarterly profit, driven by robust demand for high-margin sports utility vehicles and tractors. ($1 = 87.3720 Indian rupees)
