Samsung and SK Hynix Executives Face Investigation Over Union Profit Sharing Agreements

South Korean police opened formal probes into Samsung and SK Hynix CEOs following shareholder complaints alleging breach of fiduciary duty in union bonus deals.

Woofun AI reports that the Gyeonggi Southern Provincial Police Agency has assigned two cases to its investigation departments for formal inquiry. A shareholder group filed a complaint on July 22, accusing Samsung Electronics co-CEO Jeon Young-hyun, Vice Chairman Roh Tae-moon, and SK Hynix CEO Kwak Noh-jung of potential breach of fiduciary duty. The allegations concern agreements reached during union performance bonus negotiations without proper due diligence, which may violate the Act on the Aggravated Punishment of Specific Economic Crimes. The agreements, finalized in May, involve Samsung providing a special bonus equivalent to 10.5% of semiconductor business performance profits and SK Hynix allocating 10% of semiconductor division operating profits to employee bonuses.