SEOUL ¨C South Korea¡¯s top court upheld on Thursday a not-guilty verdict for the chairman of Samsung Electronics Jay Y. Lee, backing two lower court rulings clearing him of accounting fraud and stock manipulation related to an $8 billion merger in 2015.

The Supreme Court¡¯s verdict permanently removes a long-running legal distraction for Lee as Samsung plays catch-up in a global race to develop cutting-edge AI chips.

The verdict upheld an appeals court¡¯s ruling dismissing all the charges in the case involving the merger a decade ago between two Samsung affiliates, Samsung C&T and Cheil Industries, which prosecutors said was designed to cement Lee¡¯s control of the tech giant.

A lower court last year had also cleared Lee of the charges.

¡°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 were little changed after the ruling, up 1.7%.

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 ¡ª the world¡¯s top memory chip and 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.

Business lobby groups welcomed the court¡¯s decision, framing it as a stabilizing 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.

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.

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...