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Former S.Korean welfare minister indicted for approval of Samsung merger under president's order

Xinhua, January 16, 2017 Adjust font size:

Former South Korean Health and Welfare Minister Moon Hyung-pyo was indicted Monday for his alleged pressure on the national pension fund to approve the merger of two Samsung affiliates under the order of President Park Geun-hye.

Moon, now chairman of the National Pension Service (NPS), served as the health and welfare minister when the Samsung merger occurred in July 2015.

Moon, who has been detained, was charged with forcing the NPS to vote for the 2015 merger between Samsung C&T and Cheil Industries to create a de-facto holding company of Samsung Group, the country's largest family-run conglomerate.

According to an independent counsel team probing the scandal involving the impeached president, President Park ordered Moon through her secretaries in June 2015 to help Samsung succeed in the merger.

Under the president's order, Moon pressured the national pension fund into approving the merger despite strong opposition from foreign shareholders and outside advisory groups for an unfair exchange ratio. The NPS was the biggest shareholder of Samsung C&T at the time.

The special prosecutors' team requested an arrest warrant for Samsung Electronics Vice Chairman Lee Jae-yong for bribery, perjury and embezzlement charges.

The warrant's validity will be determined on Wednesday. Endit