The corruption scandal shaking South Korea’s largest conglomerate could lead to a major change in its leadership, Samsung’s leader said late Friday, indicating he will consider resigning. Samsung Group Chairman Lee Kun-hee spoke haltingly with reporters after he emerged from a second round of extensive questioning in a special probe into allegations of bribery, nepotism and a $205 million slush fund and nepotism.
“I will deeply think about reshuffling the corporate management structure and the management lineup, including myself,” Lee said.
Pressed if that meant he would resign, Lee said he “will think about it.”
An independent counsel appointed by the government began investigating Samsung in January, spurred by allegations from a former top Samsung attorney named Kim Yong-chul. The probe is to end April 23. Kim claimed Samsung, an empire of dozens of companies founded by Lee’s father, bribed prosecutors and judges using the slush fund. Kim also said Lee’s wife, who heads a Samsung art museum, used some of the money to buy expensive paintings from abroad.
Samsung Group immediately denied the allegations.
The 66-year-old Lee, regarded as the nation’s most influential executive, assumed blame for the scandal and said he would “take full responsibility, either morally or legally.” A company statement issued late Friday said Lee’s statements were contingent on whether the investigation uncovers any wrongdoing.
“His comment does not mean that the chairman himself or top management will step down,” according to the statement. “Rather it means that if the special prosecution concludes that there are problems, we will make necessary improvements.”
Prosecutors have raided Samsung offices and questioned top executives, as well as Lee’s family.
Samsung Group includes Samsung Electronics Co., a world leader in making computer memory chips, flat screen televisions and mobile phones. Founded 70 years ago, the conglomerate also has interests in shipbuilding, insurance, apparel and other industries. One division is building in Dubai what it touts as the world’s tallest skyscraper.
Lee, who took over leadership of the group two decades ago, is credited with making Samsung Electronics a top global brand by transforming its corporate culture to focus on quality. Many South Koreans see the company as a source of pride.
Samsung, however, also has been a target of allegations by civic groups that it has used dubious financial transactions to ensure that control of the conglomerate passes from Lee to his son.
The independent counsel is examining those claims too.
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