Samsung dismantles corporate nerve centre, top executives to be charged

South Korea’s special prosecutor will charge the group vice-chairman, its president and three others in the bribery scandal that looks likely to bring down President Park Geun-hye

Seoul — Samsung has dismantled its corporate strategy office, the nerve centre of operations for the sprawling South Korean conglomerate, following its chief’s arrest in a graft scandal that could bring down President Park Geun-hye.

Five high-ranking executives will face charges including
embezzlement, prosecutors said.
Samsung 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 co-operation between individual firms’ CEOs and the boards of directors.
Lee Jae-Yong, 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 Park and her confidant, Choi Soon-sil, to curry favour and cement his control of the smartphones-to-biopharmaceuticals business empire.

The 48-year-old Samsung chief, arrested on February 17, and four other Samsung executives will be charged with bribery and embezzlement, the country’s special prosecutor’s office said on Tuesday.
Lee is accused of pledging 43-billion won ($38m) in bribes to a company and foundations controlled by Choi. He denies wrongdoing.
His arrest over his alleged role in the corruption scandal involving impeached President Park Geun-hye, dealt a fresh blow to the technology giant and standard-bearer for Asia’s fourth-largest economy.
 

A Constitutional Court ruling on whether to uphold the impeachment, which would result in South Korea’s first democratically elected leader being thrown out of office, is expected next month.
"The five executives will face charges including bribery, embezzlement and hiding assets overseas," said Lee Kyu-chul, a spokesman for the special prosecutor, on the last day of its investigation.
Lee will also be charged with committing perjury before parliament, he said.
The other executives to be charged are Samsung Group vice chairman Choi Gee-sung, president Chang Choong-ki and Samsung Electronics Co president Park Sang-jin and executive vice-president Hwang Sung-soo, the spokesman said.

A Samsung Group spokeswoman declined to comment on the charges.
Lee, the prosecutor’s spokesman, said the case against President Park would be handed over to regular prosecutors with Park remaining a suspect, while signalling other conglomerates may also become involved in the investigation.
The special prosecutor’s office will make an official announcement regarding the conclusion of its investigation on March 6.

Reuters