Samsung Group are looking to reform themselves after the following corruption scandal that has been shaking the entire South Korea. The Korean Giant are looking to disassemble itself for the first time after 58 years long history. With this announcement, the company surprised many industry watchers, and now their plans and goals are to reform its corporate structure. They might shake up their connections between its business and political elites in South Korea, as their heir Jay Y. Lee was accused for his illegal acts.
The so-called “control tower” of the Samsung Group, will be shut down this time by the company itself. They will also abolish its presidential board which so far its task was to manage its subsidiaries. With this new reformed and decentralized version of Samsung, they will hope that the board as much as everything else will be able to make their own business decisions. The former heir Lee ended up in jail and still awaits for his charges of bribery, embezzlement, perjury, hiding the proceeds of criminal act and concealing assets overseas.
Lee also raised his vow to shut down the Future Strategy Office back in December, right before all of the scandal got involved. The executives of Samsung are interpreting the latest turn of developments as an attempt to transform the company. Its subsidiaries and a new horizontal organization structure should act freely as they will from now on.
This also represents another corporate change that Samsung seemingly made in response of Lee’s recent acts and his arrest. In the last week the company also changed its donation policies which Lee used them to pay for the aforementioned bribes.