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Samsung Group practically dismantled in 58 years

Posted March. 01, 2017 07:05,   

Updated March. 01, 2017 07:13


Samsung has dismantled its Future Strategy Office, the nerve center of operations for 59 affiliates with around 500,000 employees. With the dismantlement of the corporate strategy office, nine top group executives including Director Choi Gee-sung and Deputy Director Chang Chook-ki of the office would leave the company without any title as of March 1.

It means that control by the corporate strategy office over affiliates as a group will not effective anymore in 58 years. It was originally created as the secretary office of Samsung C&T in 1959 under Samsung Group founder Lee Byung-chul. Under the former Chairman Lee Kun-hee, it was operated as the name of "Structural Adjustment Headquarter" and "Strategic Planning Office," and it changed its name as "Future Strategy Office" in December 2010.

On that day, Samsung did not announce a plan to reform the group as many industry observers had expected. Instead of providing the last guidelines to its affiliates, the group would let them manage themselves independently to revamp. “Not providing a reform plan is a truly meaningful plan for renovate,” a senior manager of Samsung said.

Lee Joon, Samsung's chief communications officer, visited the pressroom of its Seocho headquarters in central Seoul at 3:15 p.m. and briefly announced the dismantlement of its corporate strategy office, following the announcement of special prosecutors led by independent counsel Park Young-soo that they seek arrest of all five top group executives including Samsung Electronics Vice Chairman Lee Jae-yong. The briefing lasted about four minutes. “Affiliates of Samsung Group would manage themselves independently through cooperation between individual firms’ chief executives and the boards of directors,” Lee said.

Ji-Hyun Kim jhk85@donga.com