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Samsung announces management changes in wake of scandal
Wed, Jun 25, 2008
AFP

SEOUL, SOUTH KOREA - South Korea's largest business group Samsung announced management changes on Wednesday in the wake of a scandal which saw its boss Lee Kun Hee step down.

Lee announced in April he was quitting after prosecutors charged him with tax evasion and breach of trust.

The strategic planning office, once seen as the 'control tower' of the loose-knit group, was scrapped at the same time.

A six-member committee led by Mr Lee Soon Dong, head of PR agency Cheil Communications which is part of the group, will be in charge of enhancing Samsung's brand image.

The move is aimed at addressing concerns of a vacuum in decision making.

Mr Lee, 66, had been at the group's helm for two decades and is now on trial.

The tax evasion charge relates to the alleged hiding of assets in borrowed-name accounts.

The breach of trust charge concerns the transfer of management control to his 39-year-old son Lee Jae Yong through a convertible bond issue.

The strategic planning office, a group of some 90 officials, was seen as being at the centre of the accusations.

In court appearances Mr Lee has apologised for any lapses but has denied the substance of the charges.

The group, with 59 affiliates, employs 200,000 people and accounted for more than 20 per cent of the nation's exports last year. -- AFP

 

 
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