Samsung to disband ‘Strategy’ Office as Vice-Chairman is indicted
Right after the Korean independent counsel team announced that they planned to indict Samsung Vice-Chairman and heir to the Samsung empire, Lee Jae-yong, the Samsung Group announced it would dismantle the “Future Strategy Office” with its two top officials resigning. The unit, which was comprised of roughly 200 company officials from Samsung affiliates had been the company’s policy making group, coordinating major programs among affiliates, including government affairs. This ‘control tower’ was considered the root of the scandal that led to Lee’s arrest and now indictment, and was part of the scandal that led to the impeachment of Korea’s president, Park Geun-hye.
The company is expected to hold one more hiring event in March under the old system, and then turn the hiring and decision making back to the affiliates themselves, with no central governmental affairs group. While the expectations that the group would be disbanded has been percolating since the end of the year, when it was mentioned by Lee as part of the scandal investigation, the timing coincides with the end of the investigation on Tuesday, and the aforementioned indictment.
The company is expected to hold one more hiring event in March under the old system, and then turn the hiring and decision making back to the affiliates themselves, with no central governmental affairs group. While the expectations that the group would be disbanded has been percolating since the end of the year, when it was mentioned by Lee as part of the scandal investigation, the timing coincides with the end of the investigation on Tuesday, and the aforementioned indictment.
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