Samsung has had to delay key business decisions due to corruption investigation

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Last updated: February 8th, 2017 at 10:03 UTC+01:00

Samsung Group has been ensnared in South Korea’s corruption and influence-peddling scandal. The conglomerate allegedly paid bribes of more than $35 million to win the government’s backing for a controversial merger that enabled the founding Lee family to cement its grasp on the conglomerate. Samsung heir apparent Lee Jae-yong has been questioned at length and narrowly dodged arrest but as he’s not out of the woods just yet and the investigation is likely to be extended, Samsung Group has had to delay some key business decisions that it normally makes in December every year.

Local media reports say that Samsung is now trying to figure out timing to conduct its annual reshuffle of top executives as well as the restructuring of its business divisions. It normally does this in December every year but has had to postpone it due to the ongoing investigation. Since that hasn’t been done as yet the company will have to delay the annual hiring process which normally takes place in March. Some suggest that Samsung may not conduct the annual hiring drive this year and will just allow subsidiaries and affiliates to hire new talent as and when required.

An anonymous Samsung official cited in the report said that if the investigation is extended, Samsung will have to postpone these key decisions to April, adding that things will only become clear once the investigation is completed. Samsung confirmed yesterday that it’s going to abolish its future strategy office once the investigation is complete, that’s the office which is believed to have been used to doling out money for influence.

Via Business Samsung Group
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