samsung bribery scandal threatens south korea success story - samsung

Seoul, Korea-Jay Y.
Li, the heir to one of the world's largest corporate empires, follows in the footsteps of his distinguished father.
He is responsible for key business.
He is with the president of his country.
He brought new ideas.
Then, like his father, he was charged with breaking the law. Mr.
In fact, Lee, the leader of South Korea's Samsung Group, was indicted last week for taking bribes and accused of participating in a political scandal that shocked South Korea.
An image of an industrial pillar, handcuffed and escorted by police from prison to meet prosecutors, sent a message and even shocked a weary public: South Korea's post-war economic order was threatened.
Samsung has also experienced this before.
When the company was found smuggling artificial sweeteners since the 1960 s, its leaders went in and out of trouble with minor consequences. Twice, Mr.
Lee's father, rescued from prison by a South Korean president, is worried that anything that hurts Samsung could hurt an economic machine that takes millions of people out of the rubble of the war.
Sir's thoughts
For many South Koreans, Lee has raised an attractive prospect in prison: This time it may be different.
Political unrest in South Korea could lead to a new group of leaders who are less willing to treat their business giants with children's gloves.
The public is getting tired of dialogue. collar crime.
In addition, Korea's unique blend of business, politics and top culture
In a modern era of innovation, public discontent with the old order and brutal competition from China and the rest of the world, hierarchical management is increasingly untenable. Mr.
Lee and his main aides have been accused of using bribes to bolster the family's grip on the Samsung empire.
One allegation, if confirmed, would increase public perception that the country's business elite exists only for themselves.
The ensuing scandal has the potential to overthrow the South Korean government and lead to tougher South Korean action against big companies.
Prosecutors have also sued a group of executives responsible for consolidating Mr. Xi.
Li's control over the Empire
Critics say the group is a microcosm of the country's business culture mistakes.
South Koreans are now facing a story about corporate power and family intrigue.
Including a mysterious sick patriarch, a Rasputin
Like the confidant of the country's president, a vague Samsung office has disappeared and reappeared before, and is charged with bribery in the form of a horse.
But it also includes a growing recognition that competing with Samsung and South Korea requires a serious look at how they operate.
Moon said: "We should not miss this opportunity to cut off the corrupt relationship between politics and business.
He is a member of parliament and leader of the opposition and a popular candidate for South Korea's next president.
"Only when Samsung regrets collusion and opposition with politics
Whether market activities, such as seeking political support, will become stronger.
Samsung, like its home country, is a giant in transition.
The group, one of the world's best-selling televisions and smartphones, is a major supplier within Apple's iphone and a manufacturer of various products such as cargo ships and credit cards.
It is estimated that the total sales of many of its companies are $262 billion.
It's one in itself-
Fifth of its own exports.
All of this is under pressure.
The infamous failure of the fire
The name of the Prone Galaxy Note 7 smartphone has been tarnished.
Chinese competitors are becoming cheaper.
More complicated-
Telephone, TV and electrical appliances.
Its shipbuilding business is cutting jobs.
The Chinese government is investing heavily to build a rival maker of microchips and memory.
The scandal will delay a long time.
Long-term efforts to solve these problems. Mr.
Li may still appear unscathed.
He argued that he did not pay bribes and, on the contrary, he was the victim of extortion.
In a statement, Samsung said it did not pay bribes or seek help, and said the truth would be revealed in court. But Mr.
Li's troubles
Before he was indicted, he was arrested, which is unprecedented for the leaders of South Korea's largest company --
It's a blow for those who think Samsung can turn to political relations again for help.
Samsung, which means "Samsung" in South Korea, has long been politically prosperous.
Founded by Mr. grandfather.
Li, a small fish and agricultural trader in 1938, began dabbling in new businesses, including textiles, sugar and alcohol, after the Korean War --
Later, in 1969, electronic products.
In many ways, the expansion was funded by the government.
Park Chung, its military dictator
He wants to turn South Korea into a country that produces the products it needs and exports other products.
Meanwhile, Sir.
PARK GEUN-HYE and his successor are under pressure from struggling people in the country to take tough measures against businesses seen as benefiting from the government's efforts
Start the economy.
The two sides reached a compromise. Mr.
Mr. Park permit
Li's grandfather and other business leaders are trying to maintain their wealth.
In return, he urged them to invest in the country's economic development and supported him in pushing South Korea to become a big exporter.
To help them, he offered them cheap bank loans, favorable "Buy Korea" policies and other temptations. This business-
Government cooperation has helped wealthy business leaders and their families squeeze out small businesses and international competitors.
These groups were later referred to as chaebol or "rich families" in South Korea, and until today they have dominated South Korea's economic life.
According to analysts, the top 10 chaebol in South Korea's total annual revenue is equivalent to 80% of the total economy.
Jin Sang said: "For Koreans, the chaebol has two faces . "
Jo is an economist at Hancheng University in Seoul and an authority for Samsung.
"On the one hand, the chaebol symbolize the corrupt relationship between business and politics, so there is a call to reform the chaebol.
On the other hand, the economy is so dependent on the chaebol that people are worried that shaking the chaebol too much will cause the chaebol to collapse.
"The Korean people have never had the opportunity to understand how modern globalised companies should operate," he added . ". ”Jay Y.
Li's father, Li Kun
After his father, Li Bingdong, became chairman of Samsung.
Chull died on 1987.
He faces an urgent challenge: South Korea's economy has become one of Asia's most successful economies, but its products abroad are considered cheap and unreliable.
This is part of Samsung's internal knowledge, Lee Kun-hee told his (mostly male)
Executives "change everything except your wife and children" and strive to improve the quality of Samsung.
He invited foreign experts.
When a batch of phones proved defective in 1995, he collected thousands of phones in a Samsung factory and lit them.
The effort worked.
Today, Samsung is one of the few electronics manufacturers to get a high price for its high price
TV, smart phones and kitchen appliances.
But Samsung is also repeatedly involved in some of South Korea's biggest corruption scandals. Lee Kun-
He was twice convicted of taking bribes and then tax evasion.
Every time he was suspended, he was later pardoned by the president.
Li Kun in 2014-
Hee hee had a heart attack and disappeared from public view.
Samsung says he has lost his ability to work, but no details have yet been released.
Still, thanks to a strong team of executives and consultants, the Lee family's control over Samsung remains unchallenged. When Lee Kun-
Jay Y, Hee's son.
Li, 48, had effective control over the family empire, but he did not do it alone.
As many companies do not have a public deal, the ownership of Samsung by the Lee family is not clear, but it is generally believed that the Lee family holds only a small minority stake.
Instead, it controls the company through loyal executives, as well as chain contracts and shareholdings between the company and other obscure connections.
At Samsung, some of the most loyal executives have staff for the company's strategic office.
The office links Samsung chairman to professional executives from dozens of Samsung subsidiaries that now employ a total of half of their employees
Million global population
But the office's role is less widely known: it is committed to freeing the Lee family from a dynasty-style transfer of control over Samsung's management. Mr.
Li, polite and casual, his father may be far away and far away, known as the vice chairman of Samsung, looks like
Want to bring Samsung into the modern it executives.
Despite the cutting of Samsung's electronics division
In the boom of mobile apps and online services, it basically misses the edge hardware.
He also believes that Samsung's strict corporate culture hinders innovation.
In several ways, under the leadership of Mr.
Lee, Samsung began to relax.
He launched a campaign to prevent managers from using harsh language against their subordinates, which is common in Korean offices.
He also promised to reduce meetings and office hours, encourage employees to challenge bosses, and prohibit employees from using rank titles when talking to each other --
A norm of the Korean business community.
This initiative, which the company is vigorously promoting, is called "launch"Up Samsung.
But critics still believedown approach.
For example, the company announced its launch
Samsung executives have made a concerted commitment.
Some current and former employees, who were reluctant to be named for fear of losing their jobs, said the pressure at the top would only get worse during the Obama administration. Lee.
Samsung mobile business-
Cheap and increasingly sophisticated Chinese products made by Huawei and One Plus are losing market share in China and elsewhere
In the high-end market of the smartphone market, competition with Apple has made progress.
Samsung executives want to take advantage of this by rushing to market Apple's most powerful phone, Galaxy Note 7, before it launches its new iPhone 7.
The result is disaster.
First of all, several Note 7 phones are on fire.
Then, after an embarrassing and expensive recall, some new versions were also on fire.
Samsung has taken unusual steps in the gadget business, removing the phone from the market and canceling it. Kim Sang-
Jo, an economist at Hancheng University, and other outside experts accused
Lee and the corporate strategy office said they pushed big goals without listening to lower levelslevel managers.
At the same time, the company's strategic office has been attacked for another move, a deal that will strengthen the family's control over Samsung
But it will also get involved in the scandal.
Under the leadership of the office, Samsung merged its Cheil Industries and Samsung C & T companies.
Many outside shareholders oppose the move, which will consolidate his position.
Li's control over the whole group.
The key is to get approval from the government.
Prosecutors say to win the victory
Li and the company's strategic office broke the law.
According to the prosecutor,
Lee met with South Korean President Park Geun-hye.
To consolidate this agreement, Mr. Hui went well three times.
Li came to power.
In return, they said.
Asked Mr Parker, who was impeached.
Li supports the two foundations controlled by her secret confidant, a woman named Cui kuai --sil.
According to the prosecutor,
Ms. Li and members of the Samsung corporate strategy office gave to foundations and businesses related to Ms. Li.
Color month $38 million.
Samsung's contribution to Microsoft
Cui bought a horse worth $900,000 for her equestrian daughter.
The deal was approved by Samsung's two main shareholders, the national pension fund.
According to prosecutors, after the merger, the value of the Lee family's shares increased by at least $0. 758 billion.
The national pension fund lost at least $0. 123 billion in the deal.
Samsung said in a statement that shareholders of both companies approved the deal before making any donations.
But the company also said it introduced measures to manage donations, including increased public disclosure and more scrutiny by executives and directors. Ms.
Ms. Cui's relationship with her
Ms. Park sparked a national scandal last year. Ms.
Ms. Cui, who did not have a formal government title, was reportedly involved in writing.
PARK GEUN-HYE's speech, the selection of senior government officials, and even her clothes.
The alleged bribery caught the attention of prosecutors as the scandal spread.
The scandal resonated with many South Koreans. Ms.
PARK GEUN-HYE will be removed soon, the daughter of a dictator.
Li's family supports the expansion of Samsung to the giant today.
This also highlights the view that today's chaebol leaders are hurting more than they are helping the country.
Others say corporate culture has become more stringent since Mr. Obama took office.
Li's father lost his ability to work and put pressure on the company to perform well under Mr. Li's leadership. Lee grew.
"They forgot the startup spirit of their father and grandfather . "
Moon, the leader of the opposition, refers
Li and other third
Acting as the leader of the chaebol "and choose to make money easily.
Samsung was stung by the scandal and closed its strategic office.
Skeptical people point out that Samsung has done the same before. Mr.
Li's father dissolved the office when he was in trouble with the law, just to re-
Once these troubles break out, build it in its current name.
They say its functionality may simply migrate to another part of the Empire.
"The task now is to save Jay Y.
Zhang Hai said: "Li.
Jin, professor at National University of Singapore.
"It's like Saving Private Ryan.
Samsung said in a statement that the company will be managed independently by its chief executive officer and director.
But we have reason to believe that there may be a difference this time. Already Mr.
Li was punished more than his father who had never been in prison.
The case also involves the president of South Korea, and her relatives
The position of the commercial party has fallen sharply, which means that the possibility of high-level political protection is small.
Public anger at collusion between companies and the government has never been as strong as it is now, and protests have erupted this year.
It's not clear if anyone else will lead Samsung. Lee Boo-jin, Mr.
Li's sister and the richest woman in the country run Shilla, a Samsung affiliate hotel that also has a rolefree shops.
Some analysts have speculated that due to her brother's imprisonment, she may be trying to improve her image in a huge corporate empire.
But most analysts say Samsung's complex hierarchy has been dominated by executives loyal to him. Lee.
While analysts warn that nothing can change immediately, Samsung is no doubt under new pressure and scrutiny.
"The problem with Samsung is that it's a huge wound --
Up ball for cross yarn
Geoffrey Cain says he is the author of a book about Samsung to be published soon.
"The setup is so complicated that sometimes I wonder if a bunch of smart people can find a way to pull the right connection and find a way to relax the connection and unlock it a little bit, see if they can pull it out of the company.
He added, "This has never happened in South Korea.