Samsung Donates 800 Billion Won

The Samsung Group has decided to contribute a total of 800 billion won, including private assets of Chairman Lee Kun-hee’s family, to social programs with no strings attached.

The corporation also gave an official apology regarding its provision of illegal political funds in the presidential election, expediently allocating convertible bonds of Samsung Everland, and its involvement in the political “X-file” incident.

Lee Hak-su, Samsung Group vice chairman and CEO, held a press conference at the group’s headquarters in Seoul yesterday.

“The Samsung Group is donating a total of 800 billion won, including a 450 billion won ‘Samsung Lee Kun Hee Scholarship Foundation’ established in 2002, and 350 billion won in new contributions from the chairman’s family, with no strings attached,” said Lee. “The country and society will decide how to use the money.”

The 350 billion won in new contributions from the Lee Kun-hee’s family includes 130 billion won of the chairman’s children’s stock valuation profits, which has sparked controversy over irregularities.

Lee Jae-yong, the managing director of Samsung Electronics, is offering 80 billion won, while Lee Boo-jin, vice president of Shilla Hotel, and Lee Seo-hyun, vice president of Cheil Industries, are donating a total of 50 billion won. The remaining 220 billion won includes inheritance money from the late Lee Yun-hyung, Lee Kun-hee’s youngest daughter.

This means that Lee Kun-hee’s family is donating a total of 590 billion won in private assets, including 240 billion won from the Samsung Lee Kun Hee Scholarship Foundation.

The corporation has already cut the number of workers in its restructuring office from 150 to 98 in its annual personnel reshuffle, and has decided to separate its legal affairs team, which has mainly dealt with various lawsuits related to the corporation, from the restructuring office.

It also plans to drop an ongoing lawsuit regarding the withdrawal of 44.3 billion won of donation taxes on Samsung SDS bonds with warrants, and drop its constitutional lawsuit about limitations on the voting rights of its financial affiliates.

It intends to accept the controversial law on the restructuring of the financial industry if it passes the National Assembly.

Samsung also announced that it would invest 21.3 trillion won this year, a 500-billion won increase from last year, while hiring 21,400 new employees, an increase of 1,500 people from last year.

Jeong-Hun Park sunshade@donga.com