Prosecutors Raid Samsung Welstory Over Alleged Unfair Support

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Daehyun] The prosecution conducted a search and seizure of Samsung Welstory, which was accused of receiving unfair support at the Samsung Group level.

According to the legal community on the 28th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Ko Jinwon) sent prosecutors and investigators to the headquarters of Samsung Welstory in Bundang-gu, Seongnam-si, Gyeonggi Province this morning to secure materials related to the supply of meals to affiliates.

In June last year, Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, and Samsung SDI were ordered to correct unfair support by funneling affiliate meal volumes to Samsung Welstory. Subsequently, a fine of approximately 234.9 billion won was imposed on these companies. Samsung Electronics, on the other hand, filed an administrative lawsuit claiming that the Fair Trade Commission's disposition was unfair.

Additionally, the Fair Trade Commission reported former Samsung Group Future Strategy Office chief Choi Jiseong and Samsung Electronics corporation to the prosecution for violating the Fair Trade Act. The Citizens' Coalition for Economic Justice (CCEJ) also filed a complaint against former chief Choi and Samsung Electronics Vice Chairman Jeong Hyunho for breach of duty related to the Welstory unfair support allegations.

The prosecution has been continuing investigations since last year, summoning individuals who worked at Samsung Electronics' Future Strategy Office and receiving related materials from the Fair Trade Commission. Previously, the prosecution requested a search and seizure warrant related to this case, which was once dismissed, but they reapplied and proceeded with the search and seizure.

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