Samsung Electronics and SK Hynix [Reuters = Yonhap News] 사진 확대 Samsung Electronics and SK Hynix [Reuters = Yonhap News]

Police have launched a full-scale investigation after a dispute erupted over the ‘operating profit-linked bonuses’ that Samsung Electronics and SK hynix plan to pay their employees, with accusations that the payments amount to embezzlement.

On the morning of the 19th, the Anti-Corruption and Economic Crimes Investigation Unit of the Gyeonggi Nambu Provincial Police Agency summoned Min Kyung-kwon, head of the Korea Shareholder Action Headquarters, for questioning as the complainant.

Earlier, the group filed a complaint with the National Office of Investigation on the 22nd of last month against Samsung Electronics CEOs Jun Young-hyun and Roh Tae-moon, as well as SK hynix CEO Noh-Jung Kwak, on charges of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, or embezzlement.

Before the questioning, Min held a press conference and reiterated the basis for the complaint, saying, “Paying a certain percentage of operating profit as bonuses without a resolution by the general meeting of shareholders is a transfer of company assets without a legal obligation.”

He argued that “bonuses tied to a company’s profit and loss are not wages for labor, but rather a post hoc distribution of management performance,” adding that “the disposal of profits must be approved by a resolution at the general meeting of shareholders, within the limit of distributable profits under the Commercial Act.”

The group says the special management performance bonuses agreed in May by Samsung Electronics’ labor and management, equal to 10.5% of operating profit, and SK hynix’s bonuses linked to 10% of operating profit are invalid from the outset.

It also demanded that Samsung Electronics return more than 170 trillion won to shareholders and that SK hynix return more than 100 trillion won.

A police official said, “We plan to comprehensively review whether there were any legal violations related to the bonus payments alleged by the complainant,” adding, “We will decide whether to summon the accused after reviewing the need following the complainant’s questioning.”

This article has been translated by GripLabs Mingo AI.