Prosecutors Re-summon Jang Chung-gi and Kim Jong-jung over Samsung Merger Suspicion

The prosecution flag is fluttering at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul, on the 30th, as the summons investigation of Jung Kyung-shim, wife of Justice Minister Cho Kuk and professor at Dongyang University, is imminent. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Song Seung-yoon] The prosecution investigating the merger allegations between Samsung C&T Corporation and Cheil Industries re-summoned former Samsung Future Strategy Office Deputy General Manager Jang Chung-gi and former President Kim Jong-jung on the 29th.

The Economic Crime Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Bok-hyun) is conducting a re-investigation of former Deputy General Manager Jang and former President Kim this morning. Jang was first questioned by the prosecution on the 20th. He had previously ignored multiple summons from the prosecution but began appearing after personally receiving a summons in the retrial court of Samsung Electronics Vice Chairman Lee Jae-yong and others on the 18th. Former President Kim appeared before the prosecution for the third time, following his appearances on the 10th and 17th.

Former Deputy General Manager Jang is suspected of involvement in the Samsung C&T merger alongside former Future Strategy Office Chief Choi Ji-sung and other top executives of the group. Former President Kim is also suspected of being involved throughout the merger process while serving as a team leader at the Future Strategy Office at the time.

The prosecution suspects that the Samsung Group deliberately lowered Samsung C&T's company value by reducing performance such as overseas construction orders right before the merger to secure a favorable merger ratio for Vice Chairman Lee. It is alleged that the value of Cheil Industries, in which Vice Chairman Lee held shares, was inflated to merge with Samsung C&T, and accounting fraud was committed at Samsung BioLogics, a Cheil subsidiary, to justify the merger ratio favorable to Vice Chairman Lee.

In connection with this, the prosecution also summoned former Samsung C&T CEO Kim Shin earlier this month for questioning. Former Future Strategy Office Chief Choi Ji-sung and Vice Chairman Lee are also expected to be summoned for investigation soon.