Samsung to tighten control over donations following arrest of vice chairman Lee


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.

via Reuters

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17 Comments

1. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Serves him right, man I hate corrupt people.

6. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Me too but I like money so can't blame him

8. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

You can't blame a corrupt person? How come?

9. liberalsnowflake

Posts: 273; Member since: Feb 24, 2017

because he is still with her. and doesn't have problem with the corrupt people

2. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

One of the biggest scandals in tech history. Serves them right.

4. liberalsnowflake

Posts: 273; Member since: Feb 24, 2017

true ,But its not that bigger than stephen elop did to Nokia.

12. pendragon0202

Posts: 164; Member since: Feb 23, 2015

No. That will have to be Toshiba's 1.2 billion dollar accounting scandal.

15. sissy246

Posts: 7129; 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

18. TechieXP1969

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.

19. Subie

Posts: 2430; Member since: Aug 01, 2015

Please explain exactly what money Tim's hiding. Also if a nobody like you knows about it then it's not very well hidden now, is it!

3. liberalsnowflake

Posts: 273; Member since: Feb 24, 2017

GOT TO GIVE CREDIT To SOUTH KOREA FOR INDICTING A SCION OF SOUTH KOREA

7. Hallyu

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.

11. liberalsnowflake

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.

13. pendragon0202

Posts: 164; Member since: Feb 23, 2015

So you are saying the Korean govenrment which has been controlled by Mr. LEE AND Samsung has arrested him? You do make a lot of sense!

14. mixedfish

Posts: 1567; Member since: Nov 17, 2013

Mr Lee already defeated the first arrest warrant when the (not so) independent courts denied it. They did it once and they'll do it again. 100% corrupt right down to the bone.

16. trojan_horse

Posts: 5868; Member since: May 06, 2016

Man, even cops are corrupt... so, chill out. But Samsung definitely deserves disdain for this scandal.

17. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

In other words, make the next guy doesn't get caught

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