Samsung Electronics chairman jailed for one and a half years for disrupting legal union activities

The investigation dates back to 2013, with Lee Sang-hoon serving as chairman two years ago and also serving as a chief financial officer. Chairman of the Board of Samsung Electronics (005930.KS), was violated by the Seoul Central Court of Justice for violating related laws such as the Labor Combination and Labor Relations Adjustment Act Sentenced to 1 year and 6 months. Kang Kyung-hoon, Samsung Electronics’ vice president, also received the same verdict.

This is the latest legal challenge facing tΝhe electronics tech giant. At the same time, the court’s ruling also ended years of investigations between Samsung Electronics and the union. The investigations date back to 2013, when a lawmaker disclosed internal company documents, including strategies to curb union activity. The 2015 investigation was suspended without any charges, but the investigation was resumed when prosecutors found additional evidence when investigating another case.

Li Xiangxun, 64, was chairman of Samsung Electronics two years ago. He also currently serves as CFO of Samsung Electronics, and previously held three positions within Samsung Electronics. Approximately 24 current and former Samsung Electronics management and related personnel have been convicted on similar charges for disrupting union activities.

According to South Korean media reports, senior Samsung Electronics companies including Lee Sang-hoon have been convicted by the court on multiple convictions for collecting personal information, such as marital status, personal financial status, and history of mental illness, from union members in some customer service departments.

The verdict did not affect Samsung Electronics’ stock price. Prior to the court’s announcement, Samsung Electronics rose about 2.4% in the midday trading on the 12th, and closed at 3.7% on the day, exceeding the gains of the Korean Comprehensive Sustainability Index that day. Li Xiangxun’s punishment may affect Samsung Electronics’ decision-making. Because as the chairman of the 10-member board of directors, Li Xiangxun is responsible for holding quarterly board meetings and other work.

As of press time, Samsung Electronics has not yet responded to the Beijing News reporter’s email. A South Korean media and Reuters quoted a Samsung Electronics spokesman saying that Samsung Electronics will continue to retain Lee Sang-hoon’s position.

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