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Samsung head steps down amid scandal

By: , IntoMobile
Tuesday, April 22nd, 2008 at 12:42 PM

Samsung head Lee resignsRocked 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]

About The Author

Will Park

Will hails from The City of Angels - Los Angeles, California. He spends his time playing with his numerous gadgets and looking forward to seeing what future holds for mobile technology. An avid promoter of a fully "digital" life, he promotes the widespread adoption of truly mobile, paper-less living. He dreams of the day when he can go completely digital. No more snail mail, paper receipts, bound books, notepads/spiral notebooks, credit cards, hard currency. He's a digital warrior - fighting for the converged life. He is an idealist and a realist - he has a perfect view of what the world should be but knows that the world is not perfect. Can we ever hope to see Will's dream become reality? We'll see...

  • Kubilay Gurbuz

    My Samsung cell phone was 2 months ago malfunction. I took the service for repairs. from 2 months to pass, but despite searching. My phone has not been repaired yet. I wanted to change with the new one. But change is said to have to wait for 1 month more. My wife’s Nokia mobile phone with a new one within 3 days when the malfunction has been changed. Corporate firms are thought to repair or replacement of a phone, but 2 months is why I can not understand. Solve this problem as I like you I want you to institutions. In addition, Turkey should also review your service or sales system. It is this kind of damage or disruption to the institution.