Samsung Electronics Withdraws Objection to Search Warrant in 'Wellstory Favoritism Allegation' Case

Samsung Welstory Headquarters, Seongnam-si, Gyeonggi-do [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] Samsung Electronics filed a quasi-appeal with the court objecting to the search and seizure conducted in March over allegations of preferential treatment in meal service contracts involving Samsung Welstory, but withdrew it after five months.

According to the legal community on the 11th, Samsung Electronics' legal counsel submitted a withdrawal of the quasi-appeal to Judge Kwak Taehyun of the Criminal Division 32 at the Seoul Central District Court on the 7th. A quasi-appeal is a system where one files an objection with the court against actions such as search and seizure by investigative agencies.

From March to April, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeongseop) conducted search and seizure operations at Samsung Welstory headquarters in Bundang-gu, Seongnam-si, Gyeonggi Province, and Samsung Electronics headquarters in Suwon-si, related to allegations of preferential treatment in meal service contracts at the Samsung Group level.

Samsung Electronics initially objected to the court, claiming that the scope of the prosecution's search and seizure exceeded the limits stated in the warrant and was excessively conducted. Although Samsung Electronics withdrew the quasi-appeal, there remains a possibility that they may challenge the admissibility of evidence in court later, citing the illegality of the seizure.

Earlier, in June last year, the Fair Trade Commission imposed a total fine of approximately 234.9 billion KRW on Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, and Samsung SDI for unfairly supporting Samsung Welstory by funneling affiliate meal service volumes. It also reported former Samsung Group Future Strategy Office chief Choi Jiseong and Samsung Electronics as suspects for violating the Fair Trade Act to the prosecution.

The prosecution summoned Samsung C&T President Kim Myungsoo and Samsung SDI CEO Choi Yunho to verify the decision-making process at the time. On the 27th of last month, former chief Choi, identified as the 'upper level' in the decision-making, was summoned and investigated as a suspect.

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