Be quick, CYBER MONDAY deals! Galaxy Watch 7, Samsung TV, Galaxy Buds 3 Pro and Galaxy S24 Ultra.

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

News For You
News For You
Notifications

Samsung gets raided again over controversial merger deal

Business
By 

Last updated: November 23rd, 2016 at 06:37 UTC+01:00

Samsung finds itself ensnared in a corruption scandal that threatens to bring down South Korea's President Park Geun-hye. The Supreme Prosecutors’ Office of South Korea has previously raided Samsung Electronics HQ in Seoul after allegations of bribes being paid to the president's close personal friend Choi Soon-sil in order to gain influence. Some of Samsung's top executives, even the heir apparent, have been questioned by the prosecutors.

The offices of Samsung Group were raided earlier today as part of the probe into the corruption scandal, some reports suggest that Choi Soon-sil used her influence to pressure South Korea's National Pension Service to vote in favor of the controversial merger of Samsung C&T and Cheil Industries last year. The offices of NPS have been raided today as well.

South Korea's National Pensive Service was the largest shareholder of Samsung C&T as it held around 10 percent of the company. The merger between Samsung C&T and Cheil Industries was strongly opposed by many minority shareholders and global equity funds who believed that it would only increase the founding Lee family's hold over the conglomerate and provide little or no value to minority shareholders. We've already explained in another post how this controversial merger was passed.

The National Pension Service's vote was crucial in pushing this merger through. Following the corruption probe there have been allegations that Samsung backed Choi's sham foundations in return for influence. It's alleged that Choi used her close position with the president to put pressure on the NPS to vote in favor of the merger. The prosecutors will now investigate whether the NPS only supported the merger due to the pressure that Samsung was effectively able to buy.

Samsung has previously said that it will cooperate with the authorities every step of the way. None of the allegations against the company have actually been proved right now.

Via Business Samsung Group
Galaxy AI summarized

Scroll for more related content
News For You

You might also like

Samsung Electronics turns 54 years old, celebrates anniversary in South Korea

Samsung Electronics turns 54 years old, celebrates anniversary in South Korea

Samsung Electronics has turned 54 years old today. Yes, the company is that old. In 1969, Samsung Group (which started in 1938) established Samsung Electric Industries. In 1974, Samsung Group entered the semiconductor business by acquiring Korea Semiconductor, which was the country's first semiconductor chip company and was struggling. Soon, it joined hands with Korea […]

  • By Asif Iqbal Shaik
  • 1 year ago
Samsung holds retirement ceremony for guide dogs, rehomes new puppies

Samsung holds retirement ceremony for guide dogs, rehomes new puppies

Samsung Group has a hand in almost every corner of the market, from smartphones and TVs to medicine and cargo ships. Galaxy smartphone users aren't generally aware of the company's reach, but Samsung is a conglomerate that makes a lot of technological advancements possible in and outside of South Korea. However, not everything Samsung does […]

  • By Mihai Matei
  • 2 years ago
Samsung heir Lee Jae-yong pardoned by South Korean President, gets cleared of bribery charges

Samsung heir Lee Jae-yong pardoned by South Korean President, gets cleared of bribery charges

Samsung Electronics Vice Chairman Lee Jae-yong received a huge relief today. The President of South Korea, Yoon Suk Yeol, pardoned Lee on the occasion of next week's Liberation Day anniversary in the country. Lee Jae-yong can now formally take control of South Korea's largest conglomerate. Earlier, Lee was sentenced to 2.5 years in prison after being […]

  • By Asif Iqbal Shaik
  • 2 years ago
BREAKING: Samsung boss Lee Jae-yong granted parole, will be released on Friday

BREAKING: Samsung boss Lee Jae-yong granted parole, will be released on Friday

Samsung Group's leader, Lee Jae-yong, was sent to jail a few months ago on bribery charges. However, it was being speculated that he may be pardoned by the South Korean president sometime in August. Now, it is being reported that Lee has been granted parole, which means that he will soon be released from jail. Lee […]

  • By Asif Iqbal Shaik
  • 3 years ago
Is Samsung a Korean company? A short history of the global giant

Is Samsung a Korean company? A short history of the global giant

Samsung is one of the world's largest technology companies. At $197.7 billion, it ranked second on Fortune's list of the largest tech companies by revenue in 2020. Samsung is a truly massive conglomerate with a worldwide presence and almost 300,000 employees across the globe. Most of the companies on that list are from the United […]

  • By Adnan Farooqui
  • 4 years ago
Samsung donates $24.6 million to contain coronavirus in South Korea

Samsung donates $24.6 million to contain coronavirus in South Korea

In an exemplary display of corporate social responsibility, Samsung Group has announced that all of its affiliates will donate a combined 30 billion won or $24.6 million to support the South Korean government in its efforts to contain the spread of the coronavirus infection in the country. South Korea is one of the countries dealing […]

  • By Adnan Farooqui
  • 5 years ago