Choi Seung-ho, Samsung Union Chief, Faces Controversy Over 370 Million Won Contract with Father-in-Law’s Company: "There Was No Financial Benefit"

[Financial News] Choi Seung-ho, head of the Samsung Chapter of the Samsung Group United Labor Union (SGUU), Samsung Electronics’ largest union, has claimed that "there was no financial benefit whatsoever" amid controversy over a contract with his father-in-law’s company for vests and other rally supplies.
According to Yonhap News Agency on the 9th, Choi posted an explanation in an anonymous chat room for SGUU members that day. He confirmed, "Since the Joint Struggle Headquarters was formed in March, multiple contracts for supplies and services, including promotional activities and rally preparations, have been carried out. It is true that the representative of Company A, which has become the subject of the allegations, is the union chief’s father-in-law."
However, Choi argued, "The contract with Company A was not made to provide an improper benefit to the union chief personally or to his relatives. It was an execution decision based on a comparison of the actual contract terms at the time, including the price and delivery schedule."
Earlier, allegations emerged within Samsung Electronics that Choi had contracted with his father-in-law’s company to order vests during the Joint Struggle Headquarters’ operations, sparking controversy over preferential treatment for family members. Questions were also raised about whether he had received an improper benefit in the process.
Choi explained that the vest order was decided after comprehensively comparing multiple companies on price, quality, available delivery schedules, and relevant experience. He said Company A submitted the lowest bid and could meet the delivery schedule requested by the Joint Struggle Headquarters at the time. He added that the decision was made with the consent of all members of the Joint Struggle Headquarters’ executive leadership.
Choi said, "There is no fact that any financial benefit, such as a kickback, commission, or refund, accrued to me personally as a result of the contract. Rather, the decision was made to reduce union dues spending by proceeding with the contract at a lower price based on comparative quotations, while also meeting the urgent schedule for distributing the vests."
He added, "We are currently excluding even such contracts from consideration from the outset, judging that they could pose a problem from the members’ perspective."
[email protected] Kim Hee-sun Reporter