'Samsung Welstory Unfair Support' Fair Trade Commission Review Report Includes 'Lee Jae-yong Close Aide Accusation'

[Asia Economy Reporter Joo Sang-don] The Fair Trade Commission (FTC), which investigated Samsung Group for unfairly supporting its catering company Samsung Welstory, is reportedly including in its review report (equivalent to a prosecution indictment) the intention to indict Jung Hyun-ho, head of Samsung Electronics' Business Support Task Force (President) and a close aide to Samsung Electronics Vice Chairman Lee Jae-yong.

According to industry sources on the 20th, the review report sent by the FTC Secretariat in January contained the content that four key current and former executives of Samsung's Future Strategy Office, including President Jung, would be reported to the prosecution. Vice Chairman Lee was excluded from the indictment targets.

The FTC's Corporate Group Bureau has been investigating since 2018 the allegations that Samsung Group unfairly supported Samsung Welstory. Samsung Welstory is a wholly owned subsidiary of Samsung C&T, where Vice Chairman Lee is the largest shareholder. If Samsung Welstory pays dividends to its parent company Samsung C&T, part of the dividends flows to Vice Chairman Lee.

The FTC Secretariat believes that they were involved in unfair support by mobilizing affiliates through the Business Support TF. The Business Support TF was established after Samsung abolished the 'Future Strategy Office (FSO)', which served as a control tower, in 2017. President Jung, a former head of the FSO's Personnel Support Team, currently leads the Business Support TF.

Samsung Electronics applied for a 'consent decree' to the FTC on the 17th. A consent decree is a system where if a business operator proposes a reasonable corrective measure such as restoration and relief for consumers or trading partners, and the FTC recognizes its validity after collecting opinions from stakeholders, the case is promptly closed without confirming illegality. However, a consent decree can only be decided if the illegal act does not meet the criteria for prosecution.

Accordingly, the FTC plans to decide whether to indict these individuals at a plenary meeting including the FTC chairman on the 26th to 27th, and determine whether to initiate the consent decree process.

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