Seoul Central District Prosecutors’ Office Searches and Seizes Samsung Welstory and Samsung Electronics Headquarters
Samsung Electronics Vice Chairman Lee Jae-yong Possibility of Expansion of Investigation into Management Succession Allegations
The prosecution, which is investigating the ‘suspicion of unfair support for Samsung Group affiliates’, has launched a raid on the Samsung Welstory headquarters. It has been nine months since the Fair Trade Commission filed a complaint with the prosecution last year on charges of ‘workload driving’.
The legal circles are paying attention to the possibility that the prosecution’s investigation will not only cover allegations of unfair support from affiliates, but will also touch on the succession of management rights to Vice Chairman Lee Jae-yong.
(Seongnam = News 1) Reporter Kim Young-woon = The prosecution sent prosecutors and investigators to the Welstory headquarters in Bundang-gu, Seongnam and Samsung Electronics headquarters in Yeongtong-gu, Suwon to investigate the allegations of unfair support for Samsung Group affiliates. The photo shows the Samsung Welstory headquarters in Bundang-gu, Seongnam, Gyeonggi-do on the morning of the 28th. 2022.3.28/News1″ style=”padding:0px;margin:0px”>
▲ Samsung Welstory headquarters under search and seizure
(Seongnam = News 1) Reporter Kim Young-woon = The prosecution sent prosecutors and investigators to the Welstory headquarters in Bundang-gu, Seongnam and Samsung Electronics headquarters in Yeongtong-gu, Suwon to investigate the allegations of unfair support for Samsung Group affiliates. The photo shows the Samsung Welstory headquarters in Bundang-gu, Seongnam, Gyeonggi-do on the morning of the 28th. 2022.3.28/News 1
The Fair Trade Investigation Department of the Seoul Central Prosecutors’ Office (Chief Jin-won Ko) sent about 15 prosecutors and investigators to the Samsung Welstory headquarters in Gumi-dong, Seongnam-si, Gyeonggi-do on the 28th to secure food supply data for affiliates. The prosecution also sent investigative personnel to Samsung Electronics’ headquarters in Maetan-dong, Suwon-si, Gyeonggi-do to secure related data.
In June of last year, the Fair Trade Commission imposed a correction order and a fine of 234.9 billion won, arguing that Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, and Samsung SDI, four affiliates of the Samsung Group, had unfairly driven Samsung Welstory with food supplies. In addition, Choi Ji-sung, former head of the Samsung Group’s Future Strategy Office, and Samsung Electronics Corporation were charged with violating the Fair Trade Act.
The Seoul Central District Prosecutors’ Office recently increased the number of investigations and prosecutors from 9 to 15, including two prosecutors from the 2nd Anti-Corruption Division last month, and 4 prosecutors from the Criminal Division.
As the number of prosecutors increased significantly, it was interpreted that the prosecution was considering expanding the investigation not only to the alleged breach of trust by a high-ranking executive but also to the issue of the succession of management rights to the family of the chief executive. In particular, it is reported that such a move is led by Lee Jung-soo, chief of the Seoul Central Prosecutors’ Office, and Kim Tae-hoon, 4th deputy chief, who are certain to change due to a change of government.
▲ Samsung Electronics headquarters in the process of seizure and search
yunhap news
Previously, the prosecution had requested a search and seizure warrant in connection with the investigation, but it was dismissed once. However, this time, the warrant was issued and the investigation was carried out by conducting a search and seizure of Samsung Welstory as well as the headquarters. After completing the analysis based on the data obtained that day, the possibility is raised that the prosecution will expand the investigation to the remaining affiliates. . It is also reported that complaints are being raised within the prosecution that the Seoul Central District Prosecutors’ Office, which had been standing still for a while due to the Daejang-dong investigation, turned its attention to corporate investigations during the regime change to reveal its presence.
The Seoul Central District Prosecutors’ Office said, “There are many voices of concern regarding the investigation, but we are proceeding with the charges in a strict and unbiased manner.”
Samsung is in the mood to say nothing about the prosecution’s investigation. Samsung Group did not issue a separate position until this afternoon.
Reporter Lee Tae-kwon
