By Kim Yoo-chul
Samsung Group has declared an all-out war on internal corruption.
Lee Kun-hee, chairman of the group’s flagship Samsung Electronics, talked tough on the issue for a second consecutive day Thursday.
This has triggered speculation that there may be a major reshuffle among the top echelon of Korea’s biggest conglomerate.
“Chances are quite high that a big management reshuffle of high- and mid-ranking executives will soon take place because Lee is directly handling morality-related issues,” a Samsung official said.
“Samsung’s audit teams have already been in action to uncover any corrupt, immoral, illegal and improper activities,” said the official.
On his way to the office, Lee said Samsung was reeling from corruption-related activities that have been widespread, encompassing all Samsung affiliates.
“The Techwin case is the tip of the iceberg. It seems that corruption has already spread to the entire group,” said the chairman during a brief meeting with reporters.
This is the first time in years that Lee has directly mentioned “corruption” because Samsung is thought to have high standards in corporate culture.
“The culture, however, has been tarnished.” Lee said. The tycoon has been working at the company’s headquarters since April this year.
Samsung Techwin CEO Oh Chang-suk immediately offered to resign after Lee flew into a rage over internal reports of Techwin’s involvement in “improper conduct.”
“Such corruption appeared after Korea’s economy has made progress over the last 10 years. Now, I am more worried,” Lee said.
Samsung is asked to take greater responsibilities amid the government’s push for balanced growth with small- and medium-sized enterprises (SMEs) and officials believe Lee’s strong-worded remarks signal the need for strengthened anti-corruption systems.
“Even chief executives of key affiliates will not be free from the result of internal audits. There are no safety zones,” a senior executive said, asking not to be identified.
Analysts have generally agreed with Lee’s efforts to give more authority to auditing teams with an aim to uproot corruption.
It is strongly speculated that the internal audits will be strengthened, with the auditors possibly being put under the direct control of the Samsung chairman, according to some observers.