2026.10.06. The Fair Economy — Police have begun an investigation into allegations that Choi Seung-ho, chairman of the Samsung Electronics branch of the Samsung Group Inter-Enterprise Labor Union, signed a contract for rally supplies with a company operated by his father-in-law.
The Nowon Police Station in Seoul said on the 6th that it is conducting an investigation of the complainant, Kim Soon-hwan, secretary-general of the Citizens' Livelihood Action Committee, a civic group that filed a report against Chairman Choi on charges of breach of trust and obstruction of business.
In a complaint filed with the Seoul Metropolitan Police Agency on September 10, the Citizens' Livelihood Action Committee argued that there was a need to exclude family-owned companies and contract fairly, yet the work was channeled to the father-in-law's company, which is sufficient to raise suspicions.
The controversy erupted after an internal whistleblower revealed that while serving in the union's Joint Struggle Headquarters, Chairman Choi ordered the supply of demonstration vests from a company where his father-in-law serves as representative.
According to the internal whistleblower, it is known that a contract was made with Company A, the father-in-law's company, for goods worth approximately 370 million won, including vests and raincoats, during the period of the Joint Struggle Headquarters' activities in March and April.
Chairman Choi flatly denied any undue favoritism, acknowledging that the representative of the company is indeed his father-in-law. He explained that it was a reasonable decision made considering price and delivery schedule at the time.
Chairman Choi added that it was a legitimate execution determined by objectively comparing actual contract conditions, not intended to provide undue benefits to individuals or relatives.
Police plan to thoroughly investigate whether charges of breach of trust and obstruction of business are established by securing the product ordering process and contract documents, starting with the complainant investigation.
The key issue is whether there was a conflict of interest in the product ordering process. Legal circles believe that the mere fact of dealing with a relative's company does not constitute breach of trust. The crime of occupational breach of trust is established when an act contrary to one's duties gives profit to a third party and causes property damage to the union.
If a comparative quotation shows that the cheapest price provided appropriate goods, establishing a breach‑of‑trust offense would be difficult; however, if the quality or delivery terms were unfavorable or the order exceeded what was necessary, liability could be recognized.
When procuring union supplies, it is customary to compare quotes from multiple vendors. The standard practice is to select the optimal supplier based on a comprehensive assessment of price, quality, and delivery feasibility.
Chairman Choi has a history of being referred to the prosecution over the 'union blacklist' issue in the past.
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