[THE INVESTOR] One of Korea’s largest civic groups will be lodging a complaint against the top management of construction and trading firm Samsung C&T, Samsung Group vice chairman Lee Jae-yong and the state pension fund National Pension Service on charges of malpractice and stock price manipulation in the merger of Cheil Industries and Samsung C&T in 2015.

People’s Solidarity for Participatory Democracy claimed that the merger between Cheil Industries and Samsung C&T was made to benefit the Samsung Group apparent heirs and strengthen their grip on Samsung Electronics, the crown jewel of the conglomerate. 


It argued that the stock price of Samsung C&T, at 57,234 won ($48), was set lower than the stock’s actual value when the companies were merged.

An appeals court on May 31 ruled in favor of minority shareholders who had sued C&T for stock price manipulation, overturning the decision of a lower court.

The higher court ordered the firm to increase the stock purchase price proposed to shareholders who were opposed to the firm’s merger to 66,602 won, the market price before rumors of the merger went viral in the market.

Vice chairman Lee is the largest shareholder of C&T with 17.2 percent in shares.

The construction business, which owns 4.1 percent of Samsung Electronics, owns 19.3 percent of Samsung Life Insurance.

The insurance business unit holds 7.6 percent of the tech firm.

The group also accused the NPS of supporting the merger by violating a rule that requires an advisory board to be formed before making an important decision.

(wone0102@heraldcorp.com)