Samsung Electronics said on Friday its board of directors will now vote on any financial support to third parties worth 1 billion won ($886,210.56) or more and disclose any such payments publicly. For those unfamiliar with the story, Jay Y. Lee, who serves as the de facto head of Samsung Group after his father suffered a heart attack, allegedly wired the equivalent of $36 million from Samsung subsidiaries to two foundations set up by President Park's confidante, Choi Soon-sil.
Samsung Group Vice Chairman Choi Gee-sung, who is known as "Samsung's No. 2 man", has allegedly offered to resign to take responsibility for the nation's largest conglomerate's involvement in the corruption scandal involving President Park Geun-hye, industry sources said on February 24. Samsung Group has yet to comment on these latest reports.
The flagship of South Korea's top conglomerate Samsung Group has been at the center of an influence-peddling scandal that led South Korea's parliament to impeach President Park Geun-hye in December. Its top executives have offered to resign. Both men were labeled as suspects by the South Korean special prosecutor's office that recently managed to enforce an arrest warrant against Samsung's Vice Chairman and heir Jay Y. Lee.
Were these executives to leave too, Samsung could be in trouble. The merger of two Samsung's affiliates was not only meant to help the company but also personally benefit Lee seeing how it would streamline the succession proceedings within the company and grant more power to the part of the conglomerate that's controlled by the founding Lee family.
Lee also faces charges of perjury and embezzlement. Choi Ji-sung, dubbed as the second-in-command of the Samsung empire has headed the strategy office since 2012 and Chang has been in charge of the conglomerate's external business.
In the long run, Lee said, the South Korean technology giant planned to convert Samsung Pay from a mobile payment service into a "mobile wallet".