Samsung to File Administrative Lawsuit Against Fair Trade Commission's Fine and Accusation Over 'Ilgam Molaeju-gi' Allegations

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Samsung expressed regret and difficulty in accepting the Fair Trade Commission's (FTC) sanctions imposed on Samsung Welstory, a catering company under Samsung, for allegations of unfair support by major affiliates. The FTC announced on the 24th a fine amounting to 240 billion KRW and filed charges against Samsung Electronics. Samsung stated it will file an administrative lawsuit.

Samsung Electronics, Samsung SDI, Samsung Display, Samsung Electro-Mechanics, and Samsung Welstory said in an official statement that "management activities for the welfare of employees were misrepresented as unfair support." Samsung particularly criticized the FTC’s press release, saying, "The facts and legal judgments are one-sided and do not properly reflect the contents deliberated in the plenary meeting, making it difficult to accept."

Earlier, the FTC announced that it imposed a total fine of 234.9 billion KRW on four companies including Samsung Electronics and Welstory for violating the Fair Trade Act, and filed charges against Samsung Electronics and former Vice Chairman Choi Jiseong, head of the Future Strategy Office. The fine is the largest ever imposed in an unfair support case, and the 101.2 billion KRW fine on Samsung Electronics is the largest ever imposed on a single domestic company.

Regarding this, Samsung stated, "The accusation that Welstory contributed as a core cash cow in the merger process is not included in the indictment decision, or contents different from the indictment decision are mentioned, causing public misunderstanding and concerns about prejudgment in upcoming prosecution investigations and court trials." It added, "There was no instruction for unfair support. The management at the time mentioned 'provide the best meals, improve meal quality, and ensure no employee complaints,' and the company has done its best to provide high-quality meals."

Samsung plans to proceed with administrative litigation against the FTC’s fine and measures against Samsung Electronics and others. Samsung said, "Once we receive the plenary meeting resolution, we will review the contents and file an administrative lawsuit, and through legal procedures, prove that the transactions were normal." Regarding the rejection of the consent decree application submitted last month by five companies including Samsung Electronics to the FTC, Samsung also stated, "We will continue to expand the ongoing opening of catering services."

Samsung added, "Regardless of right or wrong, we sincerely apologize for causing concern to the public and employees due to this matter, and we will carefully review related systems to ensure that such misunderstandings do not occur again."