YOON&YANG

The creditor financial institutions for Samsung Motors (currently Renault Samsung Motors Co., Ltd.) including Seoul Guarantee Insurance Co., Ltd. suffered KRW 2.45 trillion losses as Samsung Motors filed for court receivership (liquidation proceedings). Consequently, on August 24, 1999, the creditor financial institutions and the Samsung affiliated companies including Samsung chairman Kun-hee Lee reached an agreement under which chairman Lee should donate 3.5 million Samsung Life Insurance shares to the creditor financial institutions and the Samsung affiliated companies would dispose of these shares by December 31, 2000 at the price of KRW2.45 trillion.  If Samsung failed to do as such, Samsung had to pay liquidated damages at certain rate. 

The key issue in the litigation was whether Samsung had an obligation to dispose of the Samsung Life Insurance shares by December 31, 2000. On January 29, 2015, the Supreme Court rendered a decision in favor of the creditor financial institutions.  Consequently, Samsung affiliates paid the creditor financial institutions the amount from the disposal of the shares amounted KRW2.45 trillion (as Samsung Life Insurance was listed on May 7, 2010, the payment was made in the form of sale of issued shares) and KRW624.4 billion in penalty.  The litigation lasted for ten years from 2005 until January 29, 2015 when the Supreme Court rendered the final decision.