Police have launched an investigation into Choi Seung-ho, head of the Samsung Electronics chapter of the Samsung Group Multi-Company Labor Union, over allegations that he awarded union rally supply contracts to a business operated by his father-in-law.

According to police and other sources on the 6th, the Seoul Nowon Police Station summoned an official from the Citizens’ Livelihood Countermeasures Committee (CLCC)—who filed a complaint against Chairman Choi on charges of professional breach of trust and obstruction of business—to conduct a complainant interrogation starting at 10 a.m. that day.

The CLCC filed the complaint against Chairman Choi with the Seoul Metropolitan Police Agency on the 10th of last month. The case was subsequently assigned to Investigation Team 7 at the Nowon Police Station.

It is reported that following the formation of a joint struggle headquarters in March, Chairman Choi purchased promotional and rally-related supplies needed for events from Company A, which is run by his father-in-law. The scale of the contract amounts to approximately 300 million won, including rally and event supplies such as raincoats, signaling batons, and amplifiers.

In the complaint, the CLCC argued, "Despite the necessity to exclude family businesses and select suppliers fairly and rationally, these considerations were ignored, raising suspicions that work was disproportionately funneled to the father-in-law's company."

Previously, controversy surrounding family favoritism and conflicts of interest had also been raised inside and outside Samsung Electronics.

Chairman Choi has acknowledged the fact that he contracted with his father-in-law's company, but maintains that there was no favoritism or personal gain involved.

When the controversy arose last month, Chairman Choi explained, "For each contract, suppliers were selected by comprehensively considering not only price, but also quality, delivery schedule, and past work execution experience."

Regarding the order for vests in particular, he explained that while a comparison company proposed 12,000 won per vest including printing costs, his father-in-law's company offered 8,500 won, and purchases were made at 10,000 won from other companies as well.

Chairman Choi stated, "No financial benefits such as rebates, commissions, or refunds accrued to the chairman personally as a result of this contract," adding, "It was a decision made to reduce union expenditure by proceeding with the contract at a lower price based on comparative estimates and to meet urgent vest distribution schedules."

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