[2020 National Audit] Yoon Seokheon "Will Investigate Samsung Securities for Capital Markets Act Violations"

Yoon Seok-heon, Governor of the Financial Supervisory Service, is attending the National Assembly's Political Affairs Committee hearing on the 13th and taking the witness oath regarding the audit of the Financial Supervisory Service. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Park Jihwan] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), announced that he will investigate Samsung Securities for violations of the Capital Markets Act related to Samsung's merger and succession allegations.

On the 13th, during the National Assembly's Financial Services Commission audit, in response to a request from Park Yong-jin of the Democratic Party asking, "Please inform us of the Samsung Securities investigation plan before the comprehensive audit on the 23rd," Governor Yoon replied, "I will report as soon as it is prepared to the fullest extent."

Rep. Park pointed out the potential conflict of interest issue, noting that Samsung Securities had concealed the fact that it was the advisory firm for Cheil Industries and had received proxy voting rights in favor of the merger from Samsung C&T shareholders whose interests conflicted.

Furthermore, when Rep. Park asked, "Isn't Samsung Securities' act of receiving information about shareholders who failed to secure voting rights from Samsung C&T and helping to secure voting rights a violation of the Capital Markets Act?" Governor Yoon responded, "It seems so."

Financial Services Commission Chairman Eun Sung-soo also stated at the Financial Services Commission audit the previous day, "I agree that Samsung Securities' actions have a potential conflict of interest, and we will coordinate the timing of the investigation with the Financial Supervisory Service."