Justice Party's Bae Jin-kyo Reveals Document on Samsung Stock Price Manipulation Allegations... 'Preemptive Reflection of Negative Factors' (Comprehensive)

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[Asia Economy Reporter Kang Nahum] Bae Jin-gyo, floor leader of the Justice Party, revealed on the 29th documents alleging stock price manipulation by Samsung during the merger of Cheil Industries and Samsung C&T.

On the same day, Floor Leader Bae held a press conference at the National Assembly and presented documents presumed to have been prepared by Samsung. The document, titled 'Proposal for M Company Merger,' consists of a total of 14 pages.

Regarding the evidence that this document was created internally at Samsung, Floor Leader Bae explained, "At the bottom of page 4, under the obligation to resolve circular shareholding, it states that out of the 10 current circular shareholding links within the group, 9 are shares of Cheil Industries held by affiliates, and 1 is related to Samsung C&T shares held by Samsung SDI." He added, "This part is the basis to infer that this is an internal Samsung document."

The part that raises suspicion of stock price manipulation appears on page 7 of the document. That page states, "Above all, the stock price at the time of exercising voting rights at the general shareholders' meeting is most important," and specifies, "Negative factors affecting the stock price need to be reflected in the first quarter earnings or disclosed to the market before the merger board meeting and public announcement (June 22) to preemptively influence the stock price."

There is also a phrase stating, "Due to poor first quarter performance of Cheil Industries/Samsung C&T, a stock price decline is expected." It further states, "Positive factors (e.g., potential Nasdaq listing of Epis, construction contract announcements, etc.) will be concentrated after the merger board meeting in July-August to boost the stock price."

This implies that the stock price should be artificially lowered before the merger and raised afterward.

The document also states, "It is advantageous for securing voting rights and minimizing the exercise of stock purchase rights if negative factors are preemptively reflected before the merger board meeting to lower the stock price, followed by an upward trend in the stock prices of both companies after the board meeting."

Floor Leader Bae claimed that this detailed explanation shows how Samsung planned to manage the stock price during the merger process. He explained, "To pass the Samsung C&T shareholders' meeting, the stock price at the time of exercising voting rights at the shareholders' meeting is considered most important, and from the time the document was submitted until the expected shareholders' meeting on August 14 and the expected stock purchase rights exercise period on September 3, stock price management is necessary."

He continued, "(The document) comprehensively summarizes that it is advantageous for securing voting rights and minimizing the exercise of stock purchase rights to preemptively reflect negative factors affecting Samsung C&T's stock price before the merger board meeting to lower the price, and then form an upward trend after the board meeting."

Floor Leader Bae asserted, "It can be seen that Samsung specifically planned stock price manipulation to deliberately lower Samsung C&T's stock price during the merger process with Cheil Industries, and that all of these plans were carried out solely to secure voting rights."

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