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Samsung to Pay Compensation to Settle Cancer Allegations

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Samsung has bowed to growing pressure from South Koreans and said that it will pay compensation to chip foundry workers who claim that their work lead to outbreaks of cancer.

The company, which has always denied any liabilities has now issued an apology and said that it will drop legal action designed to stop any compensation payouts.

The company has however stopped short of admitting that there was a link between its factories and employees later contracting leukemia. The company had previously cited studies showing no causal link between the two issues, and seemingly stands by those claims.

However, the public outcry over the issue and the bad publicity it was generating was hurting the company, and settling the issue could have been a cheaper option than winning a court case, but losing long term customer loyalty.

Samsung's chief executive Kwon Oh-hyun said: "Several workers at our production facilities suffered from leukaemia and other incurable diseases, which also led to some deaths.

"We should have settled the issue earlier, and we are deeply heartbroken that we failed to do so and express our deep apology."

In a statement, he added: "We will make due compensation to the victims and the families."

An independent assessor will be appointed to decide on how much each claimant should receive.


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Tags: samsung  Korea