Key Points
Appellate court acquits Lee of accounting fraud charges
Legal uncertainty removed after nearly decade-long battle
Potential leadership restoration for Samsung
Implications for company's strategic decision-making
Earlier in the day, the Seoul High Court upheld a not-guilty verdict for Lee, who was indicted on charges of involvement in stock price manipulation, accounting fraud and other irregularities related to the 2015 merger of Cheil Industries Inc. and Samsung C&T Corp.
The merger was seen as crucial to Lee's succession as heir to the family-controlled group, as his father, Lee Kun-hee, had suffered a heart attack the previous year, reports Yonhap news agency.
Samsung Electronics did not issue an official response to the ruling, but a company official expressed cautious optimism.
"We need to monitor the prosecution's reaction further, so we are observing the situation carefully," said a company official, who spoke on condition of anonymity, acknowledging the possibility of the prosecution appealing the case to the Supreme Court.
"We hope that he (Lee) can return to his place and focus on his role," the official added.
Experts noted the appellate court decision removes a significant management uncertainty that has weighed on Samsung Electronics for about a decade.
While a Supreme Court appeal remains possible, legal analysts believe it is unlikely to overturn the verdict.
Lee has faced legal challenges for nearly a decade, beginning with his involvement in a 2016 corruption scandal linked to former South Korean President Park Geun-hye.
His prolonged legal battles have constrained his leadership and decision-making at the world's largest memory chip and smartphone maker.
During this period, Samsung Electronics executives frequently appeared in court hearings and prosecutor investigations, creating instability within the company.
Industry critics have argued that the company's delayed investment decisions contributed to its slower response in key tech races, particularly in artificial intelligence (AI) chips like high-bandwidth memory (HBM).
With the latest ruling, expectations are growing that Samsung Electronics will regain momentum to overcome its internal and external challenges, including geopolitical risks sparked by U.S. President Donald Trump.