'Samsung Merger Suspicion' Jang Choong-ki Recalled... Strengthening Charges Ahead of Lee Jae-yong's Summons

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution investigating allegations surrounding the merger of Samsung Group's Cheil Industries and Samsung C&T has summoned Jang Choong-ki, former deputy head of Samsung's Future Strategy Office (66), again on the 8th.

The Economic Crime Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Bok-hyun) called in former President Jang this morning to inquire about the overall decision-making process within the group’s top management during the 2015 merger of Samsung C&T and Cheil Industries.

Previously, former President Jang was questioned by the prosecution about three times between January and February.

The reason for summoning former Deputy Jang again is believed to be the imminent summons of Samsung Electronics Vice Chairman Lee Jae-yong (52). Ahead of Lee’s summons, the prosecution is revisiting all related allegations with former Deputy Jang to finalize the charges.

According to legal circles, the prosecution has reportedly sent a summons notice requesting Lee to appear early next week.

The prosecution is investigating the accounting fraud allegations involving Samsung BioLogics and the abnormal decline in Samsung C&T’s company value just before the Cheil Industries-Samsung C&T merger, viewing these as group-level plans to strengthen Lee Jae-yong’s control.

The core allegation is that Samsung BioLogics, a subsidiary of Cheil Industries in which Lee holds shares, engaged in accounting fraud to inflate Cheil Industries’ value, thereby justifying a merger ratio favorable to Lee during the merger with Samsung C&T.

Besides former Deputy Jang, the prosecution has recently summoned high-ranking current and former executives including Yoon Yong-am, former president of Samsung Securities (64), Lee Young-ho, president of Samsung C&T (61), Ko Han-seung, president of Samsung Bioepis (57), Kim Tae-han, president of Samsung BioLogics (63), and Kim Jong-jung, former president of Samsung’s Future Strategy Office (64) for questioning.

The prosecution plans to conclude the investigation into the merger allegations by the end of this month and decide whether to indict the main suspects.

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