Whistleblower: Samsung extorts tens of millions of dollars from suppliersPhoto: Youtube capture Newstapa

Samsung Electronics extracted at least KRW $20 billion (US $17 million) from a group of component suppliers in fiscal year 2014 to prop up the sagging consumer electronics segment, independent news service Newstapa reported May 10, citing a whistleblower.

Whistleblower: Samsung extorts tens of millions of dollars from suppliersPhoto: Youtube capture Newstapa

Samsung Electronics extracted at least KRW $20 billion (US $17 million) from a group of component suppliers in fiscal year 2014 to prop up the sagging consumer electronics segment, independent news service Newstapa reported May 10, citing a whistleblower.

Verbal Request

Two Samsung executives demanded a group of refrigerator and air-conditioner parts suppliers to raise KRW $20 billion for the company in September 2014 when they attended a dinner get-together with the contractors, Kwon Jeung-nam, chairman and CEO of Taejung Industries, the compressor supplier for 28 years for Samsung, told the news cooperative.

There is no paper trail for the request by the two executives, whose identities Newstapa has yet to disclose. “They [the Samsung executives] have never come to a dinner meeting before,” said Mr. Kwon. “The two executives verbally made the request.”

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