South Korea’s Samsung Group (SSNLF) on Tuesday said it has dismantled its corporate strategy office, the nerve center of operations for the sprawling conglomerate, following its chief’s arrest amid a graft scandal that could bring down President Park Geun-hye.
Samsung, in a statement, said top group executives including Vice Chairman Choi Gee-sung and President Chang Choong-ki had resigned and that its affiliates would manage themselves independently through cooperation between individual firms’ chief executives and the boards of directors.
Jay Y. Lee, third-generation leader of Samsung Group, promised in December to dismantle the corporate strategy office amid accusations that he and the office worked to bribe President Park and her confidant, Choi Soon-sil, to curry favor and cement his control of the smartphones-to-biopharmaceuticals business empire.
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The 48-year-old Samsung chief, arrested on Feb. 17, and four other Samsung executives will be charged with bribery and embezzlement.
Lee is accused of pledging 43 billion won ($38 million) in bribes to a company and foundations controlled by Choi. He denies wrongdoing.