Samsung Electronics Denies Charges in First Trial Over 'Unfair Support for School Meal Contracts'

[Asia Economy Reporter Kim Daehyun] Samsung Electronics, accused of 'preferentially allocating meal service contracts' at the group level, denied all charges in the first trial.

[Image source=Yonhap News]

On the afternoon of the 2nd, Samsung Electronics and former Future Strategy Office chief Choi Jiseong denied the charges at the first pretrial hearing held at the Seoul Central District Court Criminal Division 34 (Presiding Judge Kang Gyutae). Samsung Welstory Corporation and Executive Director Park, who were also indicted, stated, "We deny all charges."

The pretrial hearing is a procedure to confirm the defendant's position regarding the criminal charges and to plan evidence investigation. The court will hold another pretrial hearing on April 11.

Former Chief Choi and others were indicted last November on charges of violating the Monopoly Regulation and Fair Trade Act by mobilizing four affiliates?Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, and Samsung SDI?from 2013 to 2020 to funnel approximately 2 trillion won worth of meal service contracts to Samsung Welstory, thereby obtaining unfair profits.

Executive Director Park is also accused of destroying evidence by ordering employees to degauss (erase data using magnetic fields) hard disks during an on-site investigation by the Fair Trade Commission in July 2018.

The prosecution investigated suspicions that group-level support was related to Samsung Electronics Chairman Lee Jae-yong's succession of management rights but judged that it was not the substantive truth and did not indict separately.