Published : Feb. 27, 2017 - 16:27
Samsung Group, South Korea's largest business conglomerate, plans to abolish its groupwide tasks and let affiliates independently make business decisions, a group official said Monday.
The plan is in line with Samsung's move to abolish the group's key future strategy office, which has been responsible for coordinating key affairs among affiliates.
(Yonhap)
Samsung has said it will shut down the office as early as next month after the special prosecution team concludes its probe into a presidential influence-peddling scandal that led to the impeachment of President Park Geun-hye.
Acting President and Prime Minister Hwang Kyo-ahn on Monday rejected a bid by the special prosecutors to extend the investigation. The rejection means that the investigation must be concluded by Tuesday.
Samsung's de facto leader Lee Jae-yong, 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.
With the future strategy office being abolished, a personnel reshuffle of top executives would be conducted by each affiliate's board of directors, according to the official.
The group's official website and blog sites will be closed, the official said.
Samsung Group has also moved to halt a weekly meeting of top executives every Wednesday.
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 $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. (Yonhap)