Samsung Group Chairman Lee Kun-hee announced that he will be stepping down as head of South Korea’s largest corporation following his indictment on tax evasion and breech of trust. Kun-hee had led the group for more than 20 years.
Charges against him and other Samsung executives were the result of a 3-month investigation into accusations that executives were keeping a “slush” fund that was used to bribe judges and other state officials. The independent counsel running the investigation said it did not find evidence of the slush find, but did charge Kun-hee with evading taxes on up to $4.5 billion hidden in associates’ accounts.
After undergoing hours of questionings twice in the same week, Kun-hee hinted that he may step down. He announced his resignation earlier today, and Vice Chairman Lee Hak-soo announced his own resignation and that Lee Jae-yong, the chairman’s son who is an executive at Samsung Electronics, also will be stepping down.
The company also announced that Kun-hee would pay the taxes he is accused of evading and that he would not use the money found in the extra accounts.