Samsung Electronics Union Chief Faces Favoritism Allegations Over Vest Orders; Police Launch Investigation

Nowon Police Station in Seoul has begun investigating allegations that Choi Seung-ho, head of the Samsung Electronics union, favored his father-in-law's company by funneling vest orders to it. The Citizens' Coalition for People's Livelihood filed a complaint with the Seoul Metropolitan Police Agency on the 10th of last month, accusing Choi of breach of trust and obstruction of business. On the 6th, Nowon Police Station questioned the complainant, Kim Soon-hwan, secretary-general of the coalition. The coalition argued in its complaint that although there was a need to select a vendor through a fair and reasonable process, the union chief steered the work to his father-in-law's company. It claimed that the value of the goods contract with his father-in-law's firm last month was about 370 million won.

The controversy first surfaced within Samsung Electronics. When it became known that Choi had ordered rally vests from a company headed by his father-in-law during the joint struggle headquarters activities, allegations of family favoritism were raised. Choi acknowledged that the company's CEO is his father-in-law. However, he stated, "This was not a contract intended to provide undue benefits to me as chairman or to my relatives," explaining that the decision was made after comparing actual contract conditions such as price and delivery schedule at the time. In comparison quotes released by the in-house union, the vest price from his father-in-law's company was 8,500 won per vest, lower than the 10,000 won and 12,000 won quoted by other companies.

Following the questioning of the complainant, police are expected to proceed with procedures such as questioning the accused. Whether favors were actually granted is expected to be determined by the outcome of the police investigation.