Samsung Group, South Korea’s largest business conglomerate, on Tuesday announced a set of plans to revamp the group’s management, including the abolition of its key future strategy office.
The announcement came shortly after special prosecutors investigating a presidential influence-peddling scandal said they will indict Samsung’s de facto chief, Lee Jae-yong, on bribery, embezzlement and other charges in connection with the scandal that led to the impeachment of President Park Geun-hye.
Under the plans, Samsung affiliates will independently make their own business decisions throughout their board meetings.
Samsung Group Vice Chairman Choi Gee-sung and President Chang Choong-ki, who led the future strategy office, resigned, Samsung said.
The office consisted of some 200 elite officials who were picked from Samsung affiliates.
Samsung’s Lee, who was arrested earlier this month over his alleged role in the scandal, told lawmakers last December that he would abolish the group’s future strategy office, which has come under criticism regarding the scandal.
One of the office’s main tasks is to deal with government affairs, making it vulnerable to what critics say are cozy ties with the government.
With the future strategy office being abolished, a personnel reshuffle of top executives would be conducted by each affiliate’s board of directors, Samsung officials said.
The group’s official website and blog sites will be closed, officials said.
Still, it remains unclear how the sprawling Samsung Group will coordinate groupwide affairs.
Special prosecutors investigating the scandal accused Lee of paying bribes worth about US$40 million, among other charges.
The bribes were allegedly paid to Park and her longtime friend to let Samsung smoothly push ahead with succession plans for Lee, including a controversial merger of two Samsung affiliates in 2015, according to the prosecutors.