Samsung affiliates complete withdrawal from FKI

By KH디지털2

Published : Feb. 10, 2017 - 15:48

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All of the 15 Samsung Group affiliates that were members of the business interest organization Federation of Korean Industries have pulled out as of Friday, group officials said, acting on a pledge by the conglomerate's de facto heir to clean up after a major political scandal.

Samsung Electronics, the pillar of the Samsung Group, was among the first to submit its withdrawal on Monday. The group's security solution provider S-1 Corp. was the last to submit the papers late Friday, officials said.

(Yonhap)

The 15 subsidiaries accounted for a quarter of the annual membership fees collected by the FKI with approximately 13.3 billion won ($11.54 million).

Samsung companies have been deeply implicated in a scandal surrounding President Park Geun-hye and her close friend Choi Soon-sil, who are suspected of forcing leading business groups to make donations to sports and culture foundations controlled by Choi through FKI. Samsung allegedly made the donations in exchange for a smooth and cost-favorable merger of two of its affiliates as the groundwork for the group's heir apparent Lee Jae-yong to solidify his grip on the conglomerate.

Grilled with criticism at a parliamentary audit on the scandal in early December, Lee had said Samsung will withdraw from FKI.

LG Group was the first among the nations' top 4 business groups to bolt from the organization by pulling out on Dec. 27. (Yonhap)

Samsung affiliates complete withdrawal from FKI

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