The executive chairman of Samsung was cleared of financial crimes

The head of Samsung Electronics, one of the world's largest technology companies, will not face further imprisonment.

Lee Jae-yong was acquitted by a Seoul court on Monday of charges related to stock manipulation and accounting fraud linked to a contentious 2015 merger of two Samsung affiliates.

The verdict comes as a significant relief to Lee, who has been entangled in legal troubles for years.

Last year, South Korean prosecutors sought a five-year prison sentence for Lee, accusing him and other executives of inflating the stock price of a textile company, Cheil Industries, and devaluing a construction and engineering company, Samsung C&T, prior to the merger.

They claimed that merging the two companies allowed Lee to tighten his control over Samsung Electronics, the conglomerate's flagship company, where he serves as executive chairman.

Lee's legal team refuted any wrongdoing, arguing that the merger had enhanced the conglomerate's management stability.

Chief Judge Park Jung-jae of the Seoul Central District Court stated that there wasn't sufficient evidence to prove that Samsung had intended to cause losses to Samsung C&T and its shareholders through the merger.

It remains uncertain whether prosecutors will challenge this unexpected verdict.

Lee, also known as Jay Y. Lee, had previously been convicted of bribery and other corruption charges in a separate case in 2017. He received a five-year prison sentence but was released in less than a year when an appeals court dismissed some charges and suspended his sentence.

However, the billionaire returned to prison in January 2021 after receiving a two-and-a-half-year sentence without suspension from the Seoul High Court for embezzlement and bribery. He was granted parole in August 2021 and pardoned a year later.