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Korea's pension fund files damages suit against Samsung chairman over merger losses

Published: 25 Sep. 2024, 10:19

A branch of National Pension Service in northern Seoul [YONHAP]

Korea's national pension fund said Tuesday it has filed a lawsuit against Samsung Electronics 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 ($375,618) over losses incurred during the controversial merger of Samsung C&T and Cheil Industries 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 C&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