Samsung Executive's Legal Struggle Concludes, as South Korea's Highest Court Rules in Favor of the Executive
Following Chairman Lee Jae-yong's acquittal by the Supreme Court of fraud and manipulation charges related to Samsung's 2015 merger, Samsung Electronics is intensifying its strategic efforts under his leadership to secure future growth and global competitiveness.
The company's future strategy is centred around accelerated mergers and acquisitions (M&A), AI integration, and leadership in semiconductors and emerging technologies.
**Accelerated Mergers and Acquisitions (M&A)**
Since 2024, Samsung has completed six acquisitions, including notable companies in digital health, medical technology, artificial intelligence, and robotics. This approach favours frequent, small-scale "micro M&As" rather than large deals, aiming to strengthen core competencies and diversify revenue streams. The M&A targets are aligned with Samsung’s three main divisions: semiconductors, smartphones, and home appliances. For example, the acquisition of Germany's FläktGroup enhances Samsung's HVAC capabilities, especially for data center cooling in the AI era.
**AI Integration**
Samsung is embedding AI across its hardware, focusing on making AI more meaningful, personal, and accessible to users. This includes innovations in mobile devices, such as new foldable smartphones and wearable health-tracking devices with Galaxy AI features, demonstrated at the Galaxy Unpacked 2025 event. The company aims to democratize Galaxy AI across 400 million devices by the end of 2025.
**Leadership in Semiconductors and Emerging Technologies**
Post-acquittal, Lee is emphasizing reclaiming leadership in memory chips and scaling up investments in AI, climate technology, and health tech sectors. His description of Samsung's outlook as a “do-or-die survival moment” reflects the urgency to strengthen Samsung’s technological dominance amid fierce global competition.
Market reaction to the announcement was positive, with Samsung Electronics shares rising around 3.1% following the announcement, outperforming the KOSPI benchmark. Business groups, including the Korea Enterprises Federation, welcomed the verdict as positive for economic stability and innovation.
However, critics argue that the ruling underscores persistent concerns about chaebol governance and the concentration of power within family-controlled conglomerates. Regulators and public advocates will likely scrutinize internal reforms, governance protocols, and minority shareholder protections.
The Supreme Court's acquittal of Lee may reinforce his position as a legitimate leader for Samsung's next phase. However, Lee faces a dual challenge: consolidating internal control of Samsung while navigating global market pressures. A 56% drop in operating profit for Q2 and delays in AI chip development have put significant pressure on the company. Samsung's board and leadership will need to demonstrate strong strategic vision amid a challenging tech landscape.
[1] Samsung Electronics. (2025). Samsung acquires FläktGroup to strengthen HVAC capabilities. Retrieved from https://news.samsung.com/global/samsung-acquires-flaktgroup-to-strengthen-hvac-capabilities [2] Reuters. (2025, August 1). Samsung's Lee Jae-yong vows to strengthen Samsung's technological dominance. Retrieved from https://www.reuters.com/business/samsung-s-lee-vows-strengthen-samsungs-technological-dominance-2025-08-01/ [3] Samsung Electronics. (2025). Samsung unveils Galaxy AI features at Galaxy Unpacked 2025. Retrieved from https://news.samsung.com/global/samsung-unveils-galaxy-ai-features-at-galaxy-unpacked-2025 [4] The Korean Herald. (2025, July 29). Samsung Electronics shares rise following Lee Jae-yong's acquittal. Retrieved from https://www.koreaherald.com/business/samsung-electronics-shares-rise-following-lee-jae-yongs-acquittal/ [5] Samsung Electronics. (2025). Samsung aims to democratize Galaxy AI across 400 million devices by the end of 2025. Retrieved from https://news.samsung.com/global/samsung-aims-to-democratize-galaxy-ai-across-400-million-devices-by-the-end-of-2025
- Samsung Electronics' future strategy under Chairman Lee Jae-yong includes frequent, small-scale acquisitions, known as "micro M&As," to strengthen core competencies and diversify revenue streams, with a focus on digital health, medical technology, artificial intelligence, and robotics.
- In terms of AI integration, Samsung is embedding AI across its hardware, aiming to make it more meaningful, personal, and accessible to users, with innovations in mobile devices and health-tracking devices expected by the end of 2025.
- Post-acquittal, Lee is emphasizing reclaiming leadership in memory chips and scaling up investments in AI, climate technology, and health tech sectors to strengthen Samsung’s technological dominance against global competition.
- Following the acquittal, Samsung Electronics shares rose around 3.1%, which was met with positive reactions from business groups, including the Korea Enterprises Federation, viewing it as beneficial for economic stability and innovation in Korea.
