Samsung to tighten control over donations following arrest of vice chairman Lee
by Plamen Dimitrov / Feb 24, 2017, 2:42 AM
Following the recent arrest of Samsung Electronics' vice chairman Jay Y. Lee, today the company has pledged to ramp up control for any future donations or financial support made to third-parties.
In order to achieve that, the South Korean tech giant will implement several strict measures. Any financial payments above 1 billion won ($882,460) will be reviewed by a committee of "independent directors" and then publicly disclosed. Previously, only payments or donations of 680 billion won (about $600,773,200) or more to third parties were subject to such board reviews.
This move from Samsung is hardly surprising, considering that the company will naturally look to clear its name and regain customer trust after going through a corruption scandal of epic proportions.
For those unfamiliar with the story, Jay Y. Lee, who serves as the de facto head of Samsung Group after his father suffered a heart attack, allegedly wired the equivalent of $36 million from Samsung subsidiaries to two foundations set up by President Park's confidante, Choi Soon-sil.
Reportedly, the money were paid out to win favor from the country's state pension fund, which supported a merger between two Samsung affiliates in 2015. The move was supposed to smooth over the father-to-son transition of Samsung's ownership, but needless to say, it backfired in a spectacular fashion.
Posts: 3231; Member since: Oct 03, 2015
Serves him right, man I hate corrupt people.
posted on Feb 24, 2017, 2:56 AM 1
Posts: 2278; Member since: Aug 06, 2014
Me too but I like money so can't blame him
posted on Feb 24, 2017, 3:40 AM 0
Posts: 3097; Member since: Sep 01, 2014
One of the biggest scandals in tech history. Serves them right.
posted on Feb 24, 2017, 3:00 AM 4
Posts: 164; Member since: Feb 23, 2015
No. That will have to be Toshiba's 1.2 billion dollar accounting scandal.
posted on Feb 24, 2017, 4:44 AM 0
Posts: 7065; Member since: Mar 04, 2015
There is corruption going on in ALL big companies, from minor to big. It's good this guy got cought. It's funny because they always think they will get away with it but sooner or later they get cought lol
posted on Feb 24, 2017, 8:49 AM 0
Posts: 14967; Member since: Sep 25, 2013
SomTim Cook should also go to jail for price fixing and not paying taxes by hiding money? Both which are corrupt and illegal? Just wanna make sure you are on the same page with all Crimea activity. At least in Korea you get arrested and jailed. In the US CEO's only pay fines which are basically payoffs to keep from going to jail.
posted on Feb 24, 2017, 10:11 AM 1
Posts: 790; Member since: Jul 21, 2015
Great for Samsung to not hesitate to fight the darker sight. This is a definition of fairness in Samsung's internal affairs. No matter how powerful you are, if you commit a crime you'll be bring down by the law. Again, good job Samsung, we'll be continuing to be a topnotch company.
posted on Feb 24, 2017, 4:18 AM 2
Posts: 273; Member since: Feb 24, 2017
Samsung we'll be continuing to be a topnotch corrupt company who basically controls south korean corrupt government. remember ms Park scandal.
posted on Feb 24, 2017, 4:41 AM 2
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