Samsung Group’s future strategy office, which its de facto chief Lee Jae-yong vowed to abolish during a parliamentary hearing Tuesday, has long been the tech giant’s key organ in charge of acquisitions of companies and the entry of new businesses. “I will remove Samsung’s Future Strategy Office, which is subject to negative public sentiment,” Lee said.The office, dubbed the control tower of Samsung Group, was formed under the direction of group founder Lee Byung-chull in 1959. It started as a se

Industry Dec. 6, 2016

The nation was glued to television broadcasts Tuesday as the country’s top chaebol owners sat in front of lawmakers at the National Assembly to face questions over allegations they made secret deals with President Park Geun-hye and her longtime friend Choi Soon-sil in exchange for favors.The historic hearing put Samsung Electronics Vice Chairman Lee Jae-yong at the center of the Choi scandal, turning the entire session into a rare event that laid bare alleged irregularities surrounding Lee’s rol

Industry Dec. 6, 2016

LG Electronics on Thursday named Jo Seong-jin, the head of its home appliances division, as its new CEO, putting the tech giant’s operation under a one-man leadership system for speedy decision making amid fierce market competition.The South Korean electronics manufacturer had been led by three executives since its former CEO and Vice Chairman Koo Bon-joon’s departure to LG Corp., the holding company of LG Group last year.The board’s decision grants Jo full leadership of LG Electronics’ overall

Technology Dec. 1, 2016

South Korean conglomerates have started to carry out their annual reshuffles of executives this week, while they try to remain low-profile amid the ongoing prosecutors’ investigation into alleged corporate lobbying involving the South Korean president.The reshuffles started with GS Group on Tuesday, and LG Group is likely to implement changes in executive positions later this week. Samsung Group, meanwhile, has postponed their announcement to mid-December, breaking its tradition of delivering th

Industry Nov. 30, 2016

In a widely anticipated move, Samsung Electronics said Tuesday that it would review creating a holding company, increase cash returns to shareholders and have at least one outside director as part of efforts to enhance shareholders’ value. The announcement comes nearly two months after a proposal by US activist hedge fund Elliott Management to reshape its corporate structure. On Oct. 6, Elliott, through its affiliates -- Blake Capital and Potter Capital -- sent a letter to Samsung Electronics’ b

Industry Nov. 29, 2016

From a special class for the visually impaired to teach how to use a smartphone to papering the walls for low-income households, some 35 employees of Samsung affiliates who shared their talents with people in need received the annual Samsung Corporate Social Responsibility award on Thursday. Recipients of 2016 Samsung CSR award pose for photo at a ceremony held at Samsung Electronics headquarters in Seocho, Seoul, Thursday. (Samsung Group)　The Samsung CSR Award was established in 1995 to honor t

Industry Nov. 28, 2016

Kim In-ho, chairman and CEO of Korea International Trade Association, on Monday urged the government to end its cozy ties to businesses, amid intensifying allegations that President Park Geun-hye lobbied chaebol leaders.Asked of his view on the scandal involving Park and her long-time friend Choi Soon-sil, Kim said he believes that the time is ripe to end such practices and take this as an opportunity to shift into a completely free market economy. “The current government is not the only one. Al

Industry Nov. 28, 2016

Forget about the Grandeur that you used to know. The old image of the luxury sedan for upper class, middle-aged drivers is gone with the release of the all-new Grandeur last week. The new Grandeur, the sixth generation of Hyundai’s signature luxury sedan, is young, innovative and sporty.And the market is responding fast. Of all preorders, 48 percent of the drivers were in their 30s and 40s, a 7 percent increase from its previous model Grandeur HG, said Ryu Chang-seung, head of Hyundai’s domestic

Mobility Nov. 27, 2016

The South Korean government recalled more than 21,300 BMW vehicles distributed by local importer BMW Korea over defects found in the engine and airbags, officials said Friday.Of the total, 11,689 vehicles of BMW’s 19 models, including the 530d xDrive and the X6 M50d, are subject to the recall due to defective engine timing belt tensioners. The problem found with the component could make the engine stop while driving, the ministry said, quoting tests conducted by the Korea Transportation Safety A

Mobility Nov. 25, 2016

The prosecution questioned Moon Hyung-pyo, chairman of the National Pension Service, Thursday over alleged irregularities surrounding the high-profile merger of two Samsung affiliates last year.Moon was welfare minister when the state-run pension operator backed Samsung C&T’s attempt to incorporate Cheil Industries despite strong opposition from advisory groups and some shareholders. The prosecution questioned Moon as to whether he was pressured by Cheong Wa Dae to push the NPS to exercise its v

Industry Nov. 24, 2016

The prosecution Wednesday raided Samsung Group and the National Pension Service over allegations that the pension fund supported the South Korean conglomerate’s merger plan last year under political influence, raising questions again over the motive of the landmark deal.The deal was widely seen as a crucial part of Samsung’s succession scenario that involved transferring power from the bedridden Chairman Lee Kun-hee to his only son, Lee Jae-yong.Individual shareholders led by US hedge fund Ellio

Industry Nov. 23, 2016

Dealing with 7.4 billion consumers in different languages around the world and trying to change their ideas on the environment can be hard work, maybe even impossible. But Jason Clay, senior vice president of World Wide Fund for Nature, has come up with a strategy to effectively reduce the negative impact consumption has on the planet. In a major shift within the organization that had long focused on species conservation, Clay turned to the private sector for change. “Building fences around the

Industry Nov. 17, 2016

Prosecutors indicted the former chief executive of the South Korean unit of Novartis and five other former and current managers over allegations they illegally paid doctors 2.6 billion won ($2.3 million) in return for prescribing the company's drugs.In response, Swiss pharmaceutical company expressed regret through a statement, but also said without elaborating that such conduct would not have been sanctioned by the "most senior management'' at Novartis Korea."Novartis does not tolerate miscondu

Industry Aug. 13, 2016