The case covered a 2015 merger that prosecutors said was really designed to solidify his control of the tech giant.

55 year-old Lee and other former executives were accused of engineering a merger between two Samsung affiliates - Samsung C&T and Cheil Industries.

Prosecutors argued it ignored the interests of minority shareholders, and sought a five-year jail term.

Lee denied wrongdoing and argued he acted on belief the merger would be good for shareholders.

A panel of three judges in Seoul said the merger decision was reached by the boards of the two companies after their consideration and review.

A judge said it could not confirm the sole purpose was to strengthen the management rights or ease Lee's succession within Samsung.

All 14 defendants were acquitted.

The sentence means Lee doesn't have to return to jail, and could give him a freer hand in steering the country's biggest conglomerate.

He was convicted in 2017 of bribing a friend of former President Park Geun-hye.

He served 18 months of a 30-month sentence, and was then pardoned two years ago.

At the time, the government said they needed his help with a "national economic crisis".

Shares in Samsung rose 5% after Monday's ruling, but fell back to largely flat later.