Prosecutors Simultaneously Summon Choi Ji-sung and Jang Chung-gi Over Samsung Merger Suspicion
[Asia Economy Reporter Song Seung-yoon] The prosecution investigating the merger allegations between Samsung C&T and Cheil Industries simultaneously summoned former Future Strategy Office chief Choi Ji-sung and former Samsung Future Strategy Office deputy director Jang Chung-gi on the 4th.
The Economic Crime Criminal Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Bok-hyun) summoned former chief Choi in the morning as a suspect and is conducting an investigation. This is the first time former chief Choi has been questioned by the prosecution regarding the Samsung merger allegations.
Former deputy director Jang also appeared before the prosecution again on the same day. This is Jang's third appearance following the 20th and 29th of last month. Previously, Jang had repeatedly refused to comply with the prosecution's summons but personally received a summons in the retrial court involving Samsung Electronics Vice Chairman Lee Jae-yong and others. During the investigation on this day, the prosecution questioned the overall decision-making process within the group’s top management and whether there was organized involvement at the group level concerning various allegations surrounding the 2015 merger between Samsung C&T and Cheil Industries.
Former chief Choi and former deputy director Jang, along with Samsung Group’s top executives, are suspected of involvement in the Samsung C&T merger. The prosecution suspects that Samsung Group deliberately lowered Samsung C&T’s company value by reducing performance such as overseas construction orders just before the merger to secure a merger ratio favorable to Vice Chairman Lee. It is alleged that they inflated the value of Cheil Industries, in which Vice Chairman Lee holds shares, merged it with Samsung C&T, and justified the merger ratio favorable to Lee by engaging in accounting fraud at Samsung BioLogics, a subsidiary of Cheil Industries.
In relation to this, the prosecution also summoned former Samsung C&T CEO Kim Shin last month for questioning. Former President Kim Jong-jung was also questioned three times. The prosecution’s summons investigation is expected to soon extend to Vice Chairman Lee himself.
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Meanwhile, the Anti-Corruption Investigation Division 4 of the Seoul Central District Prosecutors' Office, which had been handling the Samsung merger allegations investigation, was converted into a trial division last month due to a reorganization of the prosecution system. Accordingly, the Economic Crime Criminal Division, a criminal division specializing in economic crimes, has been reassigned to investigate this case.
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