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Monday, January 16, 2017
Samsung's de facto controller involving in Park Geun-hye’s scandals
ANBOUND

In morning of January 12, Samsung Electronics Vice President, its de factor controller Lee Jae-yong was questioned by prosecutors for involving in bribery in the scandals of the Korean President Park Geun-hye. Once convicted, not only would cause Samsung to face huge crisis in its corporate image and decision-making structure, it would further stimulate dissatisfaction among the South Korean people in large-scale consortiums' monopoly of domestic industries through unjust political and commercial relations. According to Anbound's research team, the series of problems recently exposed the shortcomings of the operation of the Korean consortiums, yet the positive role of the consortium model in Korea's economic development and in foreign competition cannot be completely denied. One can expect that Samsung's chaotic situation will have profound impact on the Korean economy; if this can promote the reform of the existing financial system of the consortiums, it would not be a bad thing for the long-term development of South Korea.

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