November 21, 2024

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[THE INVESTOR] Samsung on Feb. 28 announced the official dissolution of the Future Strategy Office, the de facto control tower of the nation’s largest conglomerate that was set up by late Samsung founder Lee Byung-chull in 1959.

The “Samsung Group” will no longer exist considering it was more a nominal term referring to the control tower office that has overseen key business decisions and government affairs across affiliates with no stakes in any of them. 

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Each affiliate will be operated independently, while three key affiliates -- Samsung Electronics, Samsung Life Insurance and Samsung C&T -- may continue to play a leadership role.

Some 200 executives and employees at the office will be relocated to the affiliates they previously worked at before.

Vice Chairman Choi Gee-sung who has been leading the office since 2012 offered to resign, along with President Chang Choong-ki. Choi, former Samsung Electronics CEO, is considered a key aide to the ailing Samsung patriarch Lee Kun-hee and has played the role of mentor to his son, Samsung Electronics Vice Chairman Lee Jae-yong.

The office’s dissolution comes amid growing speculation that Samsung has been involved in the influence-peddling scandal involving President Park Geun-hye and her jailed friend Choi Soon-sil.

The Samsung heir was arrested earlier this month on charge of bribery. He is suspected of ordering his aides to offer some 43 billion won (US$36.30 million) worth of bribes to Choi in return for favors in Samsung’s pending leadership transfer to a new generation, including the government’s backing of the 2015 merger of two Samsung affiliates.

In the day, Lee and other four Samsung executives, including Choi, were indicted as the special counsel wrapped up a four-month-long probe into the corruption scandal.

The Future Strategy Office has been located at Samsung’s Seoul headquarters where the heir’s office is also located. With its dissolution, Lee’s office is expected to be moved to Samsung Electronics’ Suwon campus in Gyeonggi Province.

By Lee Ji-yoon (jylee@heraldcorp.com)