Samsung Union Leader Explains Controversy Over Contract With Father-in-Law's Company

▲ Choi Seung-ho, head of the Samsung Electronics chapter of the Samsung Group's Super-Corporate Labor Union

Choi Seung-ho, head of the Samsung Electronics chapter—the largest labor union at Samsung Electronics—has confirmed allegations that he contracted rally preparation supplies, such as vests, to a company run by his father-in-law, while maintaining that there were "no financial gains."

In an explanation posted today (Sept. 9) in an anonymous chatroom for union members, Choi said, "Following the formation of the joint struggle headquarters last March, numerous supply and service contracts were carried out for public relations activities and rally preparations," adding, "It is true that the representative of Company A [in question] is the union leader's father-in-law."

He argued, "However, the contract with Company A was not intended to provide unfair benefits to the union leader or his relatives, but was executed after comparing actual contract conditions such as prices and delivery schedules at the time."

He explained that after comprehensively comparing prices, quality, delivery availability, and work experience across multiple companies for the vest order, Company A's estimate was the cheapest, and consideration was given to the fact that it could meet the delivery schedule requested by the joint struggle headquarters at the time.

He also added that this decision was made with the consent of all executives in the joint struggle headquarters.

"No financial benefits whatsoever, such as rebates, commissions, or refunds, accrued to the union leader personally from the contract," Choi said. "Rather, it was a decision made to reduce union fee expenditures by proceeding with a contract at a lower price based on comparative estimates, while also meeting the urgent vest distribution schedule."

He added, "Currently, judging that even such contracts could be problematic from the perspective of union members, we are completely excluding them."

Previously, internal suspicions arose within Samsung Electronics that Choi had contracted his father-in-law's company to supply vests during his time with the joint struggle headquarters, sparking controversy over preferential treatment for family.

Criticism was also raised questioning whether unfair profits had been obtained in the process.

(Photo: Yonhap News)

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