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Samsung postpones exec reshuffle amid corruption probe
Early December is usually the time of year when Samsung promotes and reshuffles its company executives, but industry sources are suggesting that these decisions may be postponed until next year because of an ongoing probe into a company presidential corruption scandal.
Samsung is currently under investigation for allegedly providing some 20 billion won (US$17 million) to bogus organizations run by Choi Soon-sil, President Park Geun-hye’s long-time confidante. Choi Soon-Sil is currently awaiting trial on charges of coercion and abuse of power. As part of the probe, Samsung Electronics Vice Chairman Lee Jae-yong attended a parliamentary hearing earlier today, December 6th, to answer questions about the funds, along with details of a secret meeting held with the president last year. Samsung’s main office was also raided back in November as part of the investigation.
This wouldn’t be the first time that Samsung has delayed its yearly reshuffle due to a public investigation. Back in December 2008 Samsung delayed similar organizational decisions after Chairman Lee Kun-hee was investigated for setting up slush funds.
A new date for the delayed executive reshuffle has not been given yet, but sources suggest that it could take place sometime in February 2017 instead. The company is expected to demote and relocate several executives following the Galaxy Note 7 fiasco, and will also be making key changes as part of its general restructuring and preparations to hand over leadership to a new generation.