Prosecutors Re-summon Choi Chi-hoon, Chairman of Samsung C&T, for Investigation into 'Merger and Succession Allegations'
[Asia Economy Reporter Song Seung-yoon] The prosecution investigating the merger allegations between Samsung C&T and Cheil Industries re-summoned Choi Chi-hoon, chairman of the Samsung C&T board, on the 19th.
The Economic Crime Criminal Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Bok-hyun) summoned Chairman Choi in the morning to inquire about the overall facts and internal decision-making processes related to the decline in Samsung C&T's value during the 2015 merger with Cheil Industries. Chairman Choi had previously appeared for investigation once on the 11th of last month.
At the time of the Samsung C&T and Cheil Industries merger, Chairman Choi served as the head of Samsung C&T's construction division. He was later elected as the inaugural chairman of the integrated Samsung C&T board.
The prosecution suspects that the Samsung Group deliberately lowered Samsung C&T's company value by reducing performance such as overseas construction orders just before the merger to set a merger ratio favorable to Samsung Electronics Vice Chairman Lee Jae-yong.
Since January, the prosecution has successively summoned Kim Shin, former head of Samsung C&T's trading division; Jung Hyun-ho, head of Samsung Electronics' business support TF; Kim Jong-jung, former strategy team leader of the Samsung Future Strategy Office; and Choi Ji-sung, former head of the Future Strategy Office (vice chairman). However, following the Supreme Prosecutors' Office's directive to minimize summonses to prevent the spread of COVID-19, additional investigations of Samsung officials have been postponed.
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The investigation into the Samsung C&T and Cheil Industries merger is essentially left with only the summons of Vice Chairman Lee and decisions on judicial actions against related parties. The prosecution plans to summon Vice Chairman Lee for investigation soon.
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