Samsung has had enough of corruption in South Korea and has decided to go on the attack, first getting its own house in order.
Lee Kun-Hee, chairman of Samsung Electronics, said that an inspection of a group subsidiary found unspecified irregularities which led to the resignation of Oh Chang-Suk of Samsung Techwin, a defence and precision machinery unit. He was replaced by Samsung Electronics executive vice president Kim Cheol-Kyo.
Lee said that corruption and fraud at Samsung Techwin came to light only accidentally but I think it has spread throughout the whole group. He said that this was a growing source of concern for him and he is going to tackle it.
According to Yonhap news agency corruption in the group included taking bribes and hospitality from suppliers. However there was also pressure on junior staff to commit corrupt acts.
Lee called for appropriate penalties against wrongdoers and ordered executives to strengthen the auditing team.