Samsung Life faces possible probe over violating shareholder law

Asia's Tech News Daily

Samsung Life faces possible probe over violating shareholder law

Samsung Life Insurance’s headquarters in southern Seoul / Yonhap

By Kim Bo-eun

Samsung’s life insurance unit, currently facing punitive measures by financial authorities for violating shareholder regulations, could come under review for a penalty by the country’s top antitrust regulator on the same allegation.

The Korea Fair Trade Commission (KFTC) said Monday it is considering whether to open a probe into Samsung Life Insurance for allegedly providing improper benefits to another affiliate.

“We received filings by a local civic group last week and we are currently reviewing whether we will launch a probe into the allegations,” a KFTC official said.

The civic group Solidarity for Economic Reform filed the request with the watchdog last week.

Samsung’s life insurance unit is suspected of exempting IT service provider Samsung SDS from paying indemnities for failing to complete a 156 billion won project on time.

Samsung Life faces possible probe over violating shareholder law

Samsung Life Insurance CEO Jeon Young-muk / Courtesy of Samsung Life Insurance

Samsung Life signed a 156.1 billion won contract with Samsung SDS back in 2015, requiring the latter to set up an enterprise resource planning (ERP) system to manage business processes. According to the contract, Samsung SDS was to finish the project by April 2017. But it was not completed until October of that year.

Samsung Life failed to file 15 billion won in indemnities against Samsung SDS for the delay in setting up the system.

Financial authorities determined that Samsung’s life insurance affiliate decided to sustain losses for the benefit of Samsung SDS. Samsung Life owns stakes in Samsung SDS.

This is seen as a possible violation of regulations that limit transactions by major shareholders. The Financial Supervisory Service (FSS) in December 2020 concluded that heavy sanctions should be imposed on Samsung Life for the move, in addition to other issues concerning insurance payments.

The FSS also said that Samsung Life should pay nursing home fees to holders of its cancer insurance policies, but the company’s stance is that these expenses are irrelevant according to the terms of its policy. Other cases that have been forwarded for sanctions concern insurance payments for accidental deaths and survivorship annuity.

The Financial Services Commission (FSC) is the entity that finalizes sanctions on financial firms, but has yet to reach a conclusion, despite a full year having passed since the FSS forwarded its proposal.

“The subcommittee within the FSC is continuing a review on the legal aspects of sanctions,” an FSC official said. “It is taking some time given the complicated nature of the allegations.”

The official said the committee has convened nine meetings so far, but has yet to decide when the next meeting will be held. It is rare for the FSC’s committee to take more than a few months to reach a conclusion regarding sanctions on financial firms once the FSS forwards its view. A top court ruling in September 2020 has only complicated matters, as the court sided with an insurer in a legal dispute with a group of claimants.

“It is highly likely that Samsung Life not filing indemnities against Samsung SDS applies as a malpractice of providing benefits for an affiliate company according to the Fair Trade Act, which is separate from the company having sanctions imposed upon it by financial authorities,” Solidarity for Economic Reform said.

“We urge the KFTC to thoroughly investigate the transactions between Samsung Life and Samsung SDS to confirm whether there was in fact malpractice of providing of benefits to an affiliate company, and we urge for a strict penalty to be imposed in the case that this is determined to be a violation of the law,” the civic group added.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


January Jones stuns in knitted hat and nothing else in risqué new photo

January Jones stunned fans when she shared her most risqué photo yet on Thursday. READ: January Jones stuns in nude corset in poolside photo – but fans are divided The ... Read more »

US plans new effort to retain international engineering, science students

President Joe Biden has said he regards competition with China as the country's top national security challenge. The Biden administration plans to unveil new steps on Friday to retain international ... Read more »

Elon Musk calls Twitter's NFT profile pics 'annoying'

Soon after microblogging platform Twitter‘s subscription service Twitter Blue rolled out a new feature allowing users to show off their non-fungible token (NFT) on their profile picture, Tesla and SpaceX ... Read more »

World's first space-based movie and entertainment studio set to launch in 2024 - allowing actors and content creators to film above Earth

Sporting events, TV shows, films and influencer live streams are expected to be possible from the studio, which will orbit 250 miles above Earth. Read more »

Tinder charges more for young gays, lesbians and over-30s, claims Which?

Tinder tells Which? it was "categorically untrue that our pricing structure discriminates in any way by sexual preference". Read more »

PlayStation maker Sony in shares slump after Microsoft's Activision Blizzard swoop

The planned takeover of the Call of Duty developer by Xbox firm Microsoft represents a new challenge for the Japanese conglomerate in the battle for the console market. Read more »

Peloton shares fall 20% on report of temporary production halt

The company has seen its market value plummet sharply over the past year as people have returned to gyms and Peloton has faced greater competition for its connected exercise equipment. Read more »

'Bionic' gran is first in UK to use 'revolutionary' microchip that could help her see properly again

The octogenarian from Dagenham hopes the implant will allow her to do the things she loved again - like painting and gardening. Read more »

Where to buy the new PS5 console covers: release date, price and pre-order info

Sony finally announced official PS5 covers at the end of last year, giving you the opportunity to customise the color of your console’s faceplate. In a post on the official ... Read more »

Designers Have the Power to Shape the Metaverse. Here's How.

The world we live in is quickly changing. Technologies become an integral part of our environment, and boundaries between real and virtual worlds are blurred. Companies like Meta understand the ... Read more »

5 weird things people have transformed into crypto miners

When can something bad also be used for good? The answer is crypto mining!   Traditional crypto mining is notoriously resource-intensive with equivalent to that of countries like Argentina and ... Read more »

GM's betting its hydrogen fuel cells will revolutionize electric generators

While some automakers have bet on hydrogen to power up their transition to renewable energy, GM is following another approach: it’s going and it’s using its HYDROTEC fuel cell technology ... Read more »

Nuclear quantum computing: It's coming

A trio of separate research teams from three different continents published individual papers indicating similar quantum computing breakthroughs yesterday. All three were funded in part by the US Army and ... Read more »

Safari bug is leaking users' browsing history — but a fix is on the way (Updated)

(Update January 21, 2022, 10:15PM IST): Apple has released to fix the WebKit bug leaking your browsing history. This update will be rolled out to users soon after beta testing ... Read more »

A love letter to my lord and savior, the LaCie portable SSD

Love is unpredictable. You never know how it’s going to strike, so when it does, it’s often in the moments you least expect — and that’s precisely what happened when ... Read more »

Britishvolt gigafactory given £100m in taxpayer funding to help power electric car future

The battery factory is being built as the UK races to catch EU rivals in the battle to secure enough batteries ahead of the 2030 ban on the sale of new cars powered by petrol and diesel. Read more »

iPhone SE+ 5G to release in late April or early May, says analyst

(Image: iPhone SE 2020 model) Analyst Ross Young claims that Apple is going to release the rumoured third-generation iPhone SE in late April or early May. Apple 5G SE model ... Read more »

New Kakao CEO faces daunting tasks

Company has long way to go to restore public trust and investor confidence By Baek Byung-yeul NamKoong Whon, Kakao’s new CEO. Courtesy of Kakao Namkoong Whon, the newly appointed chief ... Read more »

SNL Korea becomes popular platform for actors to show off their goofy sides

Actress Shin Hae-sun in a scene from the comedy show “SNL Korea” / Screenshot from Coupang Play’s YouTube channel By Kwak Yeon-soo The second season of the revived “Saturday Night ... Read more »

Relocation of state-run banks as election pledge unnerves employees again

The sign of the Korea Development Bank (KDB) is located in front of its headquarters in Seoul. KDB is among several public financial institutions that presidential candidates say they plan ... Read more »

Samsung hints at Note in new Galaxy S series

Roh Tae-moon, president and head of MX Business at Samsung Electronics / Courtesy of Samsung Electronics By Baek Byung-yeul Samsung Electronics’ Galaxy Note series, which skipped release in 2021, is ... Read more »

MS-Blizzard deal prompts Korean game firms to seek more metaverse M&As

By Baek Byung-yeul Nexon, NCSOFT, Netmarble and other Korean game companies are expected to seek more mergers and acquisitions (M&As) in metaverse- and non-fungible token (NFT)-related businesses, sparked by Microsoft’s ... Read more »

Storytelling baristas appointed as Starbucks ambassadors

2022 Starbucks Korea ambassadors Yang Jung-eun, left, and Seo U-ram hold cups of coffee at a Starbucks coffee shop in Seoul, on Tuesday. Courtesy of Starbucks Korea By Kim Jae-heun ... Read more »

Korea remains No. 2 most popular content provider on Netflix in last quarter of 2021

A version of the Netflix series “Squid Game” is played on a mobile phone in this picture taken Sept. 30, 2021. Reuters-Yonhap Korea remained the No. 2 supplier of popular ... Read more »

More people place hopes on lottery tickets as pandemic drags on

By Lee Kyung-min Kim Sun-jin, 20, has been buying a lottery ticket each month, ever since she was let go from her part-time job at an eatery in Seoul in ... Read more »

Breonna Taylor's memory is being preserved in an augmented reality app

“People grieve in their way, and everyone needs a sacred space,” Taylor's sister, Ju’Niyah Palmer, said. Read more »

Chinese Olympic app has serious security flaws, report finds

The IOC issued a statement Tuesday saying the smartphone app was not compulsory and that cybersecurity testing organizations found no critical vulnerabilities with the app. Read more »

Gallery: new Nikon 400mm super-telephoto could be king of wildlife photography jungle

The camera phone wars may still be fierce, but an equally ferocious battle is brewing at the other end of the photographic spectrum – with the new Nikon Z 400mm ... Read more »

Leeds vs Newcastle live stream: how to watch Premier League online

There’s no rest for the wicked, as 19th-placed Newcastle, winless in seven weeks, now face a daunting trip to Elland Road to face one of the hardest-working teams in the ... Read more »

2FA compromise led to hack

More details have emerged about the recent hack that left almost 500 customers without their hard-earned cryptocurrencies. The company has published a post mortem on its website in which ... Read more »

Hong Kong-listed firm behind Yumy dating app is going to town with the metaverse

Newborn Town, a little-known mainland Chinese company focused on social apps for markets outside China, wants to help people hook up in the metaverse. After launching beta testing last November, ... Read more »

Apple patches Safari bug that leaked user data

Apple has pushed iOS 15.3 RC and macOS Monterey 12.2 RC to developers and beta users as part of a plan to fix a Safari flaw that leaked browsing history ... Read more »

Manchester United vs West Ham live stream: how to watch Premier League online from anywhere

West Ham travel to Old Trafford for the second time this season on Saturday afternoon as they look to get their push for a top four finish back on track. ... Read more »

40 amazing Valentine's Day gifts for him

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. If you’re shopping for Valentine’s Day gifts for him, you know ... Read more »

F1 news: Kimi Raikkonen happy to be out of Formula 1 ‘bulls**t'

Raikkonen retired at the end of the last F1 season (Getty Images) Recently retired Formula 1 driver Kimi Raikkonen says he is happy to be out of the sport because ... Read more »

Ubuntu has a pretty serious security flaw, so patch now

Cybersecurity researchers have discovered a major flaw in one of Linux’s most popular distros – Ubuntu, and are urging all users to patch immediately. As reported on Ubuntu’s website, two ... Read more »

Xbox boss says Facebook and Amazon are its main gaming competitors

Head of Xbox Phil Spencer has said huge tech companies like Facebook, Amazon, and Google are the brand’s main competitors in the gaming industry, as opposed to its traditional rivals. ... Read more »

The N64's best Zelda game is finally coming to Nintendo Switch Online

The Legend of Zelda: Majora’s Mask is finally coming to the Nintendo Switch Online Expansion Pack subscription tier, as part of its collection of N64 games. The classic Zelda title ... Read more »

Call of Duty developers considering moving away from yearly releases, says report

A new report has been published claiming that, in the wake of Microsoft’s acquisition of Activision Blizzard, developers on Call of Duty are mulling over the possibility of slowing down ... Read more »

Climate change denial on Facebook, YouTube, Twitter and TikTok is ‘as bad as ever'

The climate is changing, but misinformation about it on the major social media platforms is not. Climate change falsehoods, hoaxes and conspiracy theories are still prevalent on Twitter, Facebook, TikTok ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic