Samsung to create new office for group affairs

November 19, 2010 By KELLY OLSEN , AP Business Writer

(AP) -- Samsung will create a new organization to coordinate the group's sprawling businesses after a previous one was closed in 2008 amid a corruption scandal that rocked the massive conglomerate.

Samsung consists of dozens of companies with interests in electronics, shipbuilding, construction, leisure, finance and other businesses. Co. is its flagship corporation.

The conglomerate closed its Strategic Planning Office, the key body that coordinated group companies, in June 2008 to deal with intense criticism after Samsung Electronics Chairman Lee Kun-hee was indicted on tax evasion and other charges.

"Samsung is going to create a group organization to cope with the fast-changing business environment of the 21st century and to help grow new businesses," Rhee In-yong, Samsung Group's executive vice president in charge of communications, said Friday. His comments were released by the conglomerate.

Rhee also said that a name and launch date for the new organization had yet to be determined, but that it would be headed by Kim Soon-taek, currently head of Samsung's new business development committee.

Explosive allegations in late 2007 of bribery and other wrongdoing at Samsung by its former top lawyer spurred a high-profile investigation by special prosecutors.

The Strategic Planning Office was seen by critics as a source of corruption at Samsung and was known pejoratively as the "control tower."

South Koreans are generally proud of Samsung for its successes in global markets. It has also been a lightning rod for criticism, however, over perceptions that it wields too much power and influence in South Korean society due to its size.

The investigation by special prosecutors ultimately dismissed as groundless the bribery claims made by the former lawyer, but the probe led to Lee's indictment on tax evasion and other charges. He subsequently resigned as chairman of Samsung Electronics.

Lee was later convicted and sentenced to a suspended three-year prison term. South Korea's president issued a special pardon in December 2009 and Lee returned to his post as chairman of Samsung Electronics in March of this year.

Lee is the son of Lee Byung-chull, the conglomerate's founder.

Explore further: Samsung to bolster chip output


Related Stories

Samsung to bolster chip output

September 30, 2005

Samsung Electronics said Friday it will invest $33 billion to develop a semiconductor plant by 2012.

Samsung appeals against illicit gain

October 11, 2005

Samsung appealed Tuesday a ruling that its chairman was involved in a deal to transfer control of the company from father to son.

Former Samsung chairman Lee returns to top post

March 24, 2010

(AP) -- Lee Kun-hee, the former chairman of Samsung Electronics convicted of tax evasion and later pardoned by South Korea's president, has returned to lead the company after a nearly two-year absence.

Samsung outlines $20.6 billion investment plan

May 11, 2010

(AP) -- Samsung said Tuesday it plans to invest 23.3 trillion won ($20.6 billion) over the next decade in technologies including solar cells and medical devices, aiming to boost sales and increase its work force by tens ...

Samsung to triple capital, R&D spending this year

May 17, 2010

(AP) -- Samsung Electronics said Monday it will more than triple investment in capital spending and research and development this year to a record 26 trillion won ($22.7 billion), betting on future growth despite questions ...

Samsung chairman says son to be promoted

November 17, 2010

(AP) -- The chairman of Samsung Electronics said Wednesday his son will be promoted to a more powerful executive position, preparing the global technology giant for an eventual change in leadership.

Recommended for you

Dutch create world's largest man-made wave

October 5, 2015

In a country where most people live below sea level, studying the oceans is a matter of survival. Now Dutch scientists have created the world's biggest man-made wave in a bid to prepare for the worst.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.