Samsung Electronics Shaken by Allegations of Rent Subsidy Fraud

Samsung Electronics has launched an investigation into allegations that some employees in its semiconductor DS (Device Solutions) division fraudulently received housing support funds ahead of massive performance bonus payouts.

Samsung provides up to 700,000 won per month in rent support to young employees working at its Pyeongtaek plant who live far from their family homes or work shift schedules, on the condition that they reside in "houses under 10 pyeong (approx. 33 square meters) or 1.5-room or smaller dwellings."

However, claims recently surfaced in workplace online communities and elsewhere that some employees have been living in homes larger than 10 pyeong or in two-room apartments while submitting falsified dual contracts with reduced floor areas to the company to illicitly collect the subsidies.

As the controversy grew, Samsung began verifying the facts by demanding official documents such as building ledgers from employees.

Posts expressing anxiety over disciplinary action have appeared on the company bulletin board following management interviews, with employees writing things like, "I'm terrified of being fired. I want to die," or "I will return 100 percent of the support money received."

There was also an employee who said, "Because of what the real estate agent ajumma said, I thought everyone was doing it and that it wouldn't be a problem."

In particular, because this comes at a time when they are expected to receive hundreds of millions of won in performance bonuses driven by the semiconductor boom, the employees in question have also expressed concerns that disciplinary actions might prevent them from receiving their bonuses.

Amid Samsung's announcement of an intensive investigation into those who fraudulently collected the funds, criticisms have also emerged questioning whether the housing support system itself was flawed from the beginning—such as providing 700,000 won for a 10-pyeong home while offering nothing for an 11-pyeong home.

On the other hand, employees from other divisions with relatively smaller compensation are strongly demanding strict punishment and the recovery of the support funds.

Experts pointed out, "If the submission of false contracts is proven, charges of fraud or falsification of private documents could be established, and the real estate agents involved will also find it difficult to avoid legal responsibility."

(Produced by Lee Hyeon-yeong | Video by Seo Byeong-wook | Design by Lee Su-min | Produced by SBS Digital News)
※ Please note: This article was translated by AI and may contain errors.