The Samsung Group Has Disbanded Scandal-hit Control Tower Amidst Scandal
The Samsung Group has announced that the company's notorious control tower which is known as the Corporate Strategy Office will be disbanded in order to take responsibility for the current corruption scandal plaguing the nation. The said scandal has led to the arrest of the group's leader Lee Jae-yong and the impeachment of President Park Geun-hye.
The declaration was made after the conclusion of the special counsel's 70-day probe into the corruption scandal. It was held on the same day as acting President Hwang Kyo-ahn failed to secure consent for an extension as cited by Korea Herald. The Samsung Group will shut down the Future Strategy Office which is also known by the public as the Corporate Strategy Office along with the termination of 60 executives, President Chang Choong-ki and chief Vice Chairman Choi Gee-sung.
Around 200 workers and executives are anticipated to return to different Samsung departments where they came from originally after the dissolution of the control tower.
The end of the Corporate Strategy Office is a sign from the Samsung Group that it is planning to remove the relationship between the company and its associates which was started way back in 1959. The Corporate Strategy Office has been blamed for disrupting the operational independence of the company's affiliates.
According to Bloomberg, the upcoming trial for Lee Jae-yong would have a negative impact on the brand of the Samsung Group along with its ability to finalize major decisions. Samsung has denied allegations that it offered bribes to Choi Soon-sil and President Park Geun-hye in exchange for political support that included the merger of Samsung C&T Corp. and Cheil Industries Inc. The said deal has assured Lee's command of the company and helped him to take away the leadership from his sick father but amidst all the controversies, the shares of Samsung Inc. has risen about 1 percent on the global stock exchange.
