Samsung Group Chairman Lee Kun-hee, who was indicted for tax evasion and breach of trust last week, said today he will quit his post at South Korea's largest conglomerate.
"I will step down from the Samsung chairmanship today. I am saddened as there is still much to do, but I will leave with all the faults of the past," Lee said in a brief statement broadcast on national television.
Lee also said the group would dismantle its powerful Strategic Planning Office, which has been criticized for exercising influence across some 60 affiliates, including flagship company Samsung Electronics.
Lee's son Jae-yong will also step down as a chief customer officer of
Samsung Electronics, a group official said.
An independent counsel in January launched a probe into corruption allegations after a former top in-house lawyer at the group said some of its top management hid money and kept a slush fund to bribe politicians, prosecutors and officials.
The prosecutor found no evidence to support the bribery allegation.
If found guilty on the tax evasion charge, Lee could serve from five years to life in jail.
South Korean conglomerates, commonly known as chaebol, powered South Korea from the ashes of the 1950-53 Korean War to become Asia's third-largest economy but have been accused for years of having impenetrable management structures.
Critics say few changes have been made over the years at the family-run business groups, despite a number of high-profile convictions of their leaders. In contrast, pro-business groups have voiced concerns that the probe has delayed important management decisions at Samsung.