Prosecutors Conduct Search and Seizure at Samsung Electronics Headquarters and Samsung Welstory over Alleged Unfair Support (Comprehensive)

Allegations of Favoring Subsidiaries in Meal Supply Allocation

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

[Asia Economy Reporter Kim Daehyun] On the 28th, the prosecution conducted a search and seizure at Samsung Electronics headquarters and Samsung Welstory in connection with allegations of 'unfair support to Samsung Welstory.'

According to the legal community, on the morning of the same day, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Ko Jinwon) sent prosecutors and investigators to Samsung Electronics headquarters in Yeongtong-gu, Suwon-si, Gyeonggi Province, and Samsung Welstory headquarters in Bundang-gu, Seongnam-si, Gyeonggi Province, securing materials related to affiliate meal supply.

Earlier, in June last year, the Fair Trade Commission issued corrective orders, stating that Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, and Samsung SDI unfairly supported Samsung Welstory by concentrating affiliate meal supply volumes. Subsequently, they imposed fines totaling approximately 234.9 billion won on these companies. Samsung Electronics filed an administrative lawsuit, claiming the Fair Trade Commission's decision was unfair.

The Fair Trade Commission also 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 also filed a complaint against former Chief Choi and Samsung Electronics Vice Chairman Jung Hyunho on charges of breach of duty related to the Welstory unfair support allegations.

The prosecution has been investigating 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 warrant related to this case, which was initially dismissed, but after reapplying, the search and seizure were carried out.

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