Samsung Group to disband its corporate strategy office after prosecution probe ends
SEOUL: Samsung Group said it will disband its corporate strategy office after a special prosecut ion probe ends, setting a timeline on a pledge to wind up the of f ice that has been criticised for its role in a national graft scandal.
The sma r t phone s - t o - biopharmaceuticals business empire is current ly being invest igated by the South Korean special prosecutor’s office as part of a wider probe into the scandal that threatens to permanent ly unseat President Park Geun-hye.
Special prosecut ion has classified Jay Y. Lee, thirdgeneration leader of South Korea’s top conglomerate, and head of the corporate strategy office Choi Gee- sung as suspects in its bribery investigation on suspicions that Samsung paid money to organizations linked to Park’s confidant, Choi Soon- sil, to pave the way for a 2015 merger of two affiliates.
S amsu ng ’ s cor p or at e strategy office has come under scrutiny amid suspicions that its top officials, tasked with setting the group’s long- term agenda such as an ongoing ownership restructuring, were involved in the lobbying process.
The office is seen as a key organ through which the founding Lee family exerts control over various affiliates.
“Ac t ion wil l be taken fol lowing the conclusion of the special prosecutor’s investigation,” Samsung said in a brief statement, adding that preparations are already underway.
It did not elaborate on details including how the conglomerate plans to perform the functions that are currently performed by the strategy office.
Lee, who assumed leadership of Samsung after his father Lee Kun- hee was incapacitated by a May 2014 heart attack, said at a December parliament hearing over the graft scandal that he plans to disband the office but did not give a specific timeline.
The special prosecution’s investigat ion is current ly set to conclude by Feb 28 but the of f ice said separately on Monday it is considering seeking a 30- day extension. — Reuters