As it became known that Choi Seung-ho, Chairperson of the Samsung Group Supra-enterprise Labor Union Samsung Electronics Chapter, the largest union at Samsung Electronics, signed a contract for rally vests and other items with a company run by the Chairperson's father-in-law, controversy is brewing. While acknowledging the contract, Choi explained that the vendor was selected by comparing prices and delivery schedules, and said there was no personal financial gain.

Choi Seung-ho, Chairperson of the Samsung Group Super-Enterprise Labor Union's Samsung Electronics branch, leaves the bargaining room after stating the union's stance to proceed with a general strike following the breakdown of labor-management talks at the National Labor Relations Commission in the Government Sejong Complex on the 20th, a day before the scheduled strike notice./Courtesy of News1

According to the industry on the 9th, Choi said in an explanation posted that day in an anonymous members' chat room that "since the formation of the joint struggle headquarters in March, we have carried out multiple goods and service contracts for promotional activities and rally preparations," and "it is true that the head of the company at the center of the controversy is the Chairperson's father-in-law."

However, he argued that the contract with the company in question was not intended to provide undue benefits to a relative. He said that when ordering the vests, they compared the prices, quality, possible delivery schedules, and work experience of multiple firms, and that the father-in-law's company offered the lowest price and could meet the schedule required by the joint struggle headquarters.

Choi said the vendor selection process was not decided personally but went through the consent of the joint struggle headquarters' executive team.

He said, "There was no fact that any financial benefit, such as a rebate, commission, or refund, accrued to the Chairperson personally through the contract," adding, "It was a judgment to reduce union dues expenditure by contracting at a lower price based on comparative quotes and to meet the urgent vest distribution schedule."

The controversy erupted inside Samsung Electronics as allegations surfaced that Choi, during joint struggle headquarters activities, placed orders for rally vests and other items with a company run by the Chairperson's father-in-law. Questions were raised about whether it was appropriate for the union leadership to purchase goods with union dues from a vendor with a special relationship to the Chairperson, along with suspicions that undue benefits might have occurred.

Choi acknowledged that, apart from whether there was financial gain, the very act of contracting with a relative's company could be a problem for union members. He said, "At present, we are categorically excluding even such contracts on the judgment that they could be problematic from the members' standpoint."

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