Regarding the "family favoritism" allegations that emerged during the procurement process for items used in gatherings by the Samsung Electronics Labor Union, Choi Seung-ho, Chairman of the Samsung Group Early-Stage Labor Union Samsung Branch (hereinafter referred to as the Early-Stage Union), acknowledged that he had contracted with a company under his Jang In-i (CEO)'s name but clarified that no favoritism or personal gain was involved. The Early-Stage Union is facing intensified internal and external conflict amid the controversy over favoritism and an announced internal vote of no confidence against its vice chairperson.
According to the electronics industry on the 9th, Choi (Chairman) stated regarding the recently raised allegations about product contracts: "Since the formation of the Joint Struggle Headquarters in March, numerous product and service contracts have been carried out for promotional activities and gathering preparations." He added, "It is true that the representative of Company A (which handled the product contract) is the chairman's father-in-law." However, he drew a clear line by stating, "Claims that the company was selected solely based on its familial relationship with the chairman or that the chairman gained personal benefits from this are not factual."
Choi (Chairman) explained, "During the dispute actions and gathering preparation process, there were often times when products had to be secured within a set schedule. Therefore, companies were selected by comprehensively considering not only price but also quality, delivery schedules, and work experience for each contract." He further noted, "The order for vests was also carried out under the same criteria."
According to the union's explanation, among the competing companies, the one offering the lowest price and capable of meeting the requested delivery schedule was selected. The union added that this decision was made with the approval of the executive board of the Joint Struggle Headquarters.
Choi (Chairman) asserted, "There is no fact that any financial benefits such as rebates, commissions, or refunds were directed to In Hae (Chairman) personally through this contract." He further claimed, "On the contrary, the contract was concluded at a lower price compared to other bids in order to reduce union fund expenditures and simultaneously align with the urgent vest distribution schedule." Additionally, he stated, "The contract with Company A was not made to provide improper benefits to the chairman or his relatives but was executed after comparing actual contract conditions such as current prices and delivery schedules. We have now decided to exclude even such contracts entirely from consideration, judging that they could be problematic from the members' perspective."
Conflict both inside and outside the Samsung Electronics Labor Union has also come to the surface amid this controversy. The Early-Stage Union maintains that information regarding the vest order by the Joint Struggle Headquarters, which sparked the family favoritism allegations, was leaked externally through another union within Samsung Electronics, leading to the issue being raised. Besides the Early-Stage Union, Samsung Electronics is home to other unions such as the National Samsung Electronics Labor Union (Jeonsamno) and the Donghaeng Union.
In particular, tensions have escalated after the Donghaeng Union, centered on the DX division, demanded performance-based bonuses distributed through company-wide funds and withdrew from the joint negotiation team. The Early-Stage Union is also showing signs of reorganizing its structure to focus primarily on the DS (Device Solutions) division by reducing union membership eligibility criteria.
Internal strife has also erupted within the Early-Stage Union. The Early-Stage Union announced plans to hold a vote of no confidence against the vice chairperson from the DX (Device Experience) division and GwangjuJi (Chairman) between the 16th and 22nd. The union claims that these individuals have been carrying out efforts to dismantle the union.
in INDUSTRY
