Wednesday, March 24, 2010

Former Samsung Chairman Returns after Pardon

Former Samsung group chairman Lee Kun-hee has returned to the helm as the chairman of Samsung Electronics after an absence of 23 months. Lee was forced to step down in April, 2008. At the time, he was charged with tax evasion and breach of trust in a perceived bid to ensure his son’s eventual takeover of the Samsung Group. He was convicted of tax evasion three months later and was handed a suspended three-year sentence. The Korean president issued a pardon three months ago.

According to the Samsung spokesman, the company decided the leadership of the group’s former chairman was needed to take the upper hand in the changing global market.

Lee said that within 10 years all products and businesses representing Samsung might disappear.

Will Samsung find new growth engines under his leadership?

Does this signal that in the midst of a global economic crisis, Korea can’t afford to take economic restructuring effort including revamping its skewed industrial structure?

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