The "ruling dynasty" at Samsung Group resigned after indictments for tax evasion. The son and grandson of the founder of Samsung both resigned ending a 70 year "reign" at the company. What this will ultimately mean for Samsung is unknown but a "headless" company always spells trouble for the investors and consumers.

Chairman Lee Kun-hee announced his resignation at a press conference today in Japan. Also resigning with him were Vice Chairman Lee Hak-soo, and Lee Jae-yong, Lee Kun-hee’s son and heir.  Lee Jae-yong was also an executive at Samsung Electronics. Although he was indicted on tax evasion charges, another more serious charge was dismissed. The other claim was that Lee conspired with others to raise a slush fund to bribe South Korean officials. The prosecutors could not find evidence to substantiate the claim even though a former Samsung lawyer was working with them on the case.

Lee Soo-bin, chairman of Samsung Life Insurance, will assuming some of the chairmanship responsibilities. He will be the external face of the company, but it is uncertain who, if anyone, will be filling the Chairmanship.

Samsung is well known as a manufacturer of electronics. Not only does Samsung produce some of the chips included in the products they sell, it is one of the main competitors in the mobile phone and flat screen TV markets.

Although the day to day functioning of Samsung will continue normally for a while, as decisions and direction become more necessary, the company will begin to feel the lack of leadership at the top. Especially since Lee Kun-hee was seen as the visionary of Samsungs growth over the years.

Related:

Entry was posted on Tuesday, April 22nd, 2008 at 8:21 am under Crime, Legal.

Read more entries by Susan Wilson.
Stumble It!