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Tuesday, February 28, 2017
Samsung Group Disbands Its Future Strategy Office


Samsung Group revealed its plans to revamp the group's management Tuesday, including dismantling its controversial Future Strategy Office.



The company said it will no longer operate a unit to handle government affairs. This means that Samsung Grouip is essentially decentralizing group-wide tasks, and its affiliates will make their own business decisions.

"We have decided to disband the Future Strategy Office," Samsung said in a statement, adding its top officials _ Vice Chairman Choi Gee-sung and President Chang Choong-ki have resigned.

The plans come as Samsung Electronics Vice Chairman Lee Jae-yong is under arrest on multiple charges, including bribery and embezzlement, due to his involvement in the ongoing corruption scandal related to President Park Geun-hye, who was impeached last December, and her confidant Choi Soon-sil.

An independent counsel team investigating the scandal said it plans to indict Lee.

Samsung Group's Future Strategy Office comprises about 200 officials picked from Samsung affiliates that has served as the group's top policy-making body by coordinating major affairs among affiliates. Its staff is expected to return to Samsung's units where they originally worked.

Samsung also unveiled measures to enhance transparency and accountability in managing financial donations and monetary support for corporate social responsibility (CSR) activities and funds.

The group also said Samsung Electronics President Park Sang-jin, who is involved in the scandal, has stepped down.

Samsung SDI Co Ltd said on Tuesday that Jun Young-hyun, the head of memory business at Samsung Electronics Co Ltd, has been chosen as its new CEO. Jun will be appointed in a shareholder's meeting on March 24.



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