7 shocking Samsung controversies that rocked the tech world

When you think of Samsung, you probably picture sleek Galaxy smartphones, futuristic smart TVs, or cutting-edge home appliances.

Founded in 1938 in South Korea, Samsung has grown from a small trading company into a global tech powerhouse that rivals Apple, Google, and Huawei.

But behind its dazzling innovations lies a darker side. Over the decades, Samsung has faced repeated scandals, ranging from exploding phones and labour abuses to billion-dollar bribery cases.

Here are seven controversies that reveal the turbulent history of Samsung and may change how you see this global giant forever.

1. Exploding Galaxy Note 7 disaster

In 2016, Samsung suffered one of the most infamous product failures in tech history when the highly anticipated Galaxy Note 7 had a fatal flaw i.e. , batteries that overheated, caught fire, and in some cases, exploded.

The defect forced a massive global recall, costing the company billions of dollars and shaking consumer trust.

Several airlines even banned passengers from carrying the phone on flights.

2. Labour abuses and child labour allegations

Samsung has long been criticised for its labour practices, especially in its supply chain. Between 2012 and 2015, watchdog groups accused the company of tolerating child labour at supplier factories in China and Vietnam.

While Samsung denied or claimed to have acted against violations, reports of underage workers and hazardous environments have continued to tarnish its reputation as a responsible employer.

3. The 2007 slush fund scandal

In 2007, whistleblower Kim Yong-chul, a former Samsung legal executive, revealed that chairman Lee Kun-hee had maintained massive slush funds to bribe prosecutors, judges, and politicians.

Investigations uncovered billions in hidden assets and bribery schemes. Though Lee was convicted of tax evasion and sentenced to prison, he was controversially pardoned in 2009 by South Korea’s president, allegedly to allow him to continue serving on the International Olympic Committee.

4. Lee Kun-hee’s prostitution scandal

In 2016, an investigative report shook South Korea when video footage appeared to show Samsung chairman Lee Kun-hee paying for sex with prostitutes.

The scandal was sensational not just for the act itself but because blackmailers had secretly filmed the encounters and extorted money from Samsung.

5. Bribery scandal and imprisonment of Lee Jae-yong

In 2017, Samsung’s de facto leader Lee Jae-yong (the heir to Lee Kun-hee) was arrested on charges of bribery, embezzlement, and perjury.

He was accused of funneling nearly $40 million to a confidante of then-President Park Geun-hye in exchange for government support for a controversial merger of Samsung subsidiaries.

Lee was jailed, released, retried, jailed again, and then pardoned in 2022.

6. Price fixing and market manipulation

Samsung has also faced allegations of anti-competitive behaviour. In 2011, the European Commission fined Samsung €145 million for participating in a price-fixing cartel in the DRAM (memory chip) market.

Similar cases surfaced in Canada, where Samsung and other companies agreed to pay $120 million in settlements after conspiring to manipulate chip prices between 1999 and 2002.

7. Misleading water-resistance claims

In 2022, Samsung was fined $14 million in Australia for misleading advertising.

 Between 2016 and 2018, Samsung marketed its Galaxy phones as water-resistant, even showing them being used in swimming pools and oceans.

But thousands of customers complained that water damage ruined their devices, corroded charging ports, and voided warranties.