South Korea's Storage Two Giants' Executives Accused of Embezzlement, Police Launch Investigation

August 5th. A South Korean shareholders' group has filed a criminal lawsuit against the CEOs of Samsung Electronics and SK Hynix, alleging that their bonuses were not bound by a collective bargaining agreement. The police have launched an investigation into the case. On August 5th, a shareholder group named the "Korean Shareholder Movement Headquarters" stated: "Under the 'Specific Economic Crimes Aggravated Punishment Act,' the Samsung Electronics and SK Hynix CEOs are suspected of violating shareholder trust, and the cases have been respectively transferred to the first and second search divisions of the Gyeonggi Southern Provincial Police Agency."

On July 22nd, the group had already filed a complaint with the National Investigation Office (NOI) of the Korean National Police, accusing Samsung Electronics Co-CEO Jun Young-hyun and Lu Tae-won, as well as SK Hynix CEO Koo Lu-mo. The group believes that the executives agreed to pay bonuses without sufficient review of the labor agreement and established a payment mechanism that unreasonably depletes company assets, constituting a breach of trust. (Market News)