Shareholder Group Demands Faster Probe Into Samsung, SK Hynix Bonus Breach-of-Trust Case

A shareholder advocacy group that filed criminal complaints alleging breach of trust over performance bonuses tied to operating profit has urged authorities to speed up their investigations, saying the cases are being unreasonably delayed.

The Korea Shareholder Action Center issued a statement Wednesday calling out both the Corruption Investigation Office for High-ranking Officials, known as the CIO, and the Gyeonggi Southern Police Agency, which are handling the respective complaints.

The group said it had filed a complaint with the CIO against the minister of employment and labor over the ministry's alleged involvement in brokering a tentative wage agreement at Samsung Electronics in May, but that 63 days had passed without investigators even interviewing the complainants.

It added that complainants were interviewed by the Gyeonggi Southern Police Agency on Saturday in connection with the separate complaints against the chief executives of Samsung Electronics and SK hynix, but that the investigation into the SK hynix case appeared similarly stalled. The group said it had also been notified that investigators did not plan to question the accused in that case.

The group warned that further delays would deepen the harm to shareholders and called on authorities to reach a conclusion as soon as possible.

"While state agencies defer their judgment, recovery of damages becomes harder and the outflow of company assets continues to this day," the group said. "Such neglect may itself be subject to punishment."

The group filed a complaint in July with the CIO against Employment and Labor Minister Kim Young-hoon on charges of abuse of authority and coercion.

That same month, it filed a separate complaint with police against Samsung Electronics co-CEOs Jeon Young-hyun and Roh Tae-moon, and SK hynix CEO Kwak Noh-jung, on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

The group contends that the two companies created a structure that allows company assets to flow out by yielding to union demands for performance bonuses, and that Minister Kim should also be held accountable for facilitating the tentative agreement at Samsung Electronics in May rather than preventing the threatened strike.