Samsung head steps down amid scandal
By Will Park on Tuesday, April 22nd, 2008 at 12:42 PM PST In Announcements, Financial/Corporate News, Samsung
Rocked by scandal and fraud investigations, Samsung’s CEO Lee Kun-hee has announced his resignation as Chief of Samsung. Following a tax evasion indictment, Lee will be relinquishing control of the Samsung Group after 20 years at the helm.
“(I) deeply apologise for causing concern to the nation and will take full responsibility for that,” said Lee.
Lee’s son, along with four other high-level executives, have also stepped down.
The shuffle was said to be an effort to increase the company’s transparency following a corruption investigation launched in January. Still, “This cannot be considered a major reform measure even with Lee stepping down, because the management structure of Samsung is built up so that he can influence it as he wishes anyway,” said Park Won-suk, a senior official with the People’s Solidarity for Participatory Democracy.
Lee’s family controls the most powerful conglomerate in South Korea, and his influence extends beyond just his role as head of Samsung. Through the conglomerate and its affiliates, Lee’s family controls 20% of the country’s exports. The resignation is likely little more than a public overture of change at Samsung. As Stefan pointed out, powerful businessmen with more money than they know what to do with don’t go to jail. They just resign and jump ship with a golden parachute.
[Via: Reuters]
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