Korea: Samsung's Lee says goodbye

"At SAMSUNG, we are committed to strengthening our culture of creativity and seizing the opportunities of the day. That is how we prosper and thrive in these challenging and exciting times. As long as our passion endures, as long as our fervour for creative innovation and challenge endures, tomorrow will be still better and brighter. Always remember, the future awaits those who dream."

When Lee Kun-Hee wrote those words in his Chairman's message to Samsungs customers, suppliers and staff he did not expect the dream to be over so soon. Today, he announced that, in the face of another round of corruption allegations, he will lead the company he joined as Vice Chairman of its Samsung Corporation in 1987, rising to be Group Chairman about a decade later.

There are 59 companies under his control, now and the heads of several of those stood behind him as he announced

his resignation to a news conference called for the purposes. The importance of the event was such that national TV networks carried it live.

Lee was convicted of bribery a decade ago but nevertheless retained his position. Other allegations have come and gone. He has been a particular "favourite" of Korea's Transparency International who have held him up as someone who has sidestepped scandal and conviction when in other countries his position may well have been regarded as untenable.

But his departure has left the Group in turmoil - for he was joined in resigning by Lee Hak-Soo and Lee Jae-Yong, both of whom held senior positions. For the time being Lee Soo-Bin, chairman of Samsung Life Insurance will be caretaker for Chairman of the Group.

Korea's legal system owes a lot to that of the USA - even to the extent of so-called "special prosecutors." It was action by one such that appears to have precipitated Lee's decision to retire at the age of 66 - considered young in his context. He has been charged with tax evasion amounting to about GBP55 million. The investigation resulted from a allegations from a whistleblower early this year. However, the claim made by the whisteblower that there was an illegal fund set up especially to for bribery was not proceeded with - prosecutors said they could not find sufficient evidence to link any such fund to Lee.

Lee's father created Samsung and its management has been somewhat dynastic. The departure of the other Lees makes for a major shift in the management team.

(image from Samsung website)