National Pension Service Files Damage Compensation Lawsuit Against Lee Jae-yong and Others 9 Years After Samsung Merger

"Samsung C&T-Cheil Industries Merger Damage"
9 Defendants Including Samsung C&T Corporation
Claimed Compensation Amount 510 Million Won

The National Pension Service (NPS) has filed a lawsuit seeking damages against Samsung Electronics Chairman Lee Jae-yong and seven others, claiming losses incurred during the merger process of Samsung C&T and Cheil Industries.

According to the NPS on the 24th, the organization filed a lawsuit on the 13th at the Seoul Central District Court against eight individuals, including Chairman Lee, former Samsung Group Future Strategy Office Chief Choi Ji-sung, former Future Strategy Office Deputy Director Jang Chung-gi, former Minister of Health and Welfare Moon Hyung-pyo, and former NPS Fund Management Headquarters Director Hong Wan-sun, seeking approximately 500 million KRW in damages.

Lee Jae-yong, Chairman of Samsung Electronics [Photo by Yonhap News]

This lawsuit was filed on the grounds that the NPS, as a major shareholder, suffered losses during the 2015 merger of Samsung C&T and Cheil Industries. At the time, the NPS held an 11.21% stake in Samsung C&T and supported the merger proposal.

However, suspicions arose that the merger ratio (1:0.35) was set to favor the Samsung family. Subsequent special prosecutor investigations revealed that under political pressure, the NPS supported the merger despite incurring losses.

An NPS official stated, "The Ministry of Health and Welfare also intended to file a lawsuit before the statute of limitations expires within this year and has been preparing for the lawsuit," explaining that preparation time was necessary. Although the claimed damages amount to 510 million KRW, the amount could increase as the damages are specifically calculated through expert evaluations during the litigation process.

This lawsuit was filed with less than one year remaining before the statute of limitations expires in July next year. The NPS intends to specifically calculate the losses incurred from the merger and hold those responsible accountable.