Prosecutors Summon Former Samsung Miwon Office President Kim Jong-jung... Investigation into 'Merger Suspicion'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution investigating suspicions surrounding the merger process between Samsung C&T Corporation and Cheil Industries has summoned a former senior executive of Samsung's former Future Strategy Office (FSO).

According to the legal community on the 10th, the Anti-Corruption Investigation Division 4 of the Seoul Central District Prosecutors' Office (led by Chief Prosecutor Lee Bok-hyun) summoned Kim Jong-jung, former head of Samsung's FSO, for questioning this morning. Following the summons of Kim Shin, former CEO of Samsung C&T, on the 7th, the prosecution is intensifying the investigation by calling Kim Jong-jung. However, Kim Shin left the prosecutors' office after about an hour and 30 minutes due to issues with hiring a lawyer. It is known that the prosecution plans to summon Kim Shin again for further questioning.

Kim Jong-jung is suspected of being involved throughout the merger process while serving as the head of the strategy team at Samsung's FSO during the 2015 merger between Samsung C&T and Cheil Industries. In May 2015, Samsung Group resolved to merge the two companies under the condition of exchanging one share of Cheil Industries for three shares of Samsung C&T. The proposal was finally approved at the shareholders' meeting in July of the same year, completing the merger.

The prosecution believes that through the merger, Lee Jae-yong, vice chairman of Samsung Electronics and major shareholder of Cheil Industries, was able to stably secure shares in the integrated Samsung C&T, which functions as the holding company of Samsung Group, thereby strengthening his control over the group. They suspect that Samsung C&T deliberately lowered its company value by reducing performance such as overseas construction orders to create a favorable merger ratio.

This content was produced with the assistance of AI translation services.