Samsung employees accused of inflating accessory prices; 6 billion won in assets frozen

Prosecutors have secured a court order to freeze over 6 billion won (approximately $4.3 million USD) in assets suspected to be illicit gains from a scheme involving former and current Samsung Electronics employees. The employees are accused of causing the company approximately 10.9 billion won in damages by inflating prices for accessories included in tablet packages supplied to Egypt.

The alleged conspiracy involved the employees collaborating with a local Egyptian firm. The tablet package price was fixed, meaning that any increase in the cost of accessories would necessitate a reduction in the tablet's unit price, thus directly impacting Samsung's profitability. The accused allegedly raised the prices of these accessories, leading to significant losses for the company.

Investigators found that the employees established a joint-stock company in South Korea and siphoned off about 5.2 billion won of the profits gained from the inflated prices. This money was allegedly disguised as payments for mask transactions. Samsung Electronics filed a complaint against the employees in 2023, leading to their indictment by prosecutors last May.

While the accused have denied involvement in inflating the supply prices, prosecutors presented evidence, including emails, witness testimonies, and bank account analyses, to support their charges. A prosecutor stated that the investigation will continue to identify and freeze any further hidden assets to ensure thorough recovery of the illicit gains.

The court's decision to freeze the assets is a preliminary measure, preventing the defendants from disposing of property suspected to be linked to the crime before a final verdict is reached. This step is crucial in ensuring that any potential fines or confiscated proceeds can be recovered if the employees are found guilty.

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We will thoroughly recover the criminal proceeds by confirming the defendants' hidden assets and additionally requesting preservation orders.