Pension fund files damages suit vs. Samsung chairman over merger case

Yonhap, Philippine News Agency

In addition to Lee, the NPS also sought compensation from Samsung C&T, as well as individuals including former top Samsung executives and a health minister. (File Photo: Jonathan Kemper/Unsplash)

SEOUL – South Korea’s national pension fund said Tuesday it has filed a lawsuit against Samsung Electronics Co. Chairman Lee Jae-yong with a Seoul court seeking compensation over losses incurred from a controversial merger of two Samsung affiliates.

In the suit filed with the Seoul Central District Court on Sept. 13, the National Pension Service (NPS) demanded 501 million won (USD375,618) over losses incurred during the controversial merger of Samsung C&T Corp. and Cheil Industries Inc. in 2015.

In addition to Lee, the NPS also sought compensation from Samsung C&T, as well as individuals including former top Samsung executives and a health minister.

With an 11.21 percent stake, the NPS was a major shareholder of Samsung C&T, the de facto holding firm of Samsung Group, at the time of the merger, which was seen as crucial to Lee’s taking control of the conglomerate.

A special counsel probe into the merger found that a ratio of 0.35 Cheil shares was offered for every one Samsung CT&T share and that the NPS cast its vote in favor of the merger due to pressure from the former Park Geun-hye administration. (Yonhap)