Samsung is in troubled waters. The vice chairman of Samsung Electronics and heir to the conglomerate Lee Jae-yong was arrested last week on charges of bribery. He allegedly paid millions of dollars in bribes to win the government’s support for a controversial 2015 merger between two Samsung affiliates. While the investigation is still ongoing, his detention means that there’s now a leadership vacuum at the conglomerate, even though the company says that despite the arrest it’s going to be business as usual.
Former executives and company insiders believe that the Samsung scion’s arrest might hamper decisions on strategic investments and acquisitions even though many of its affiliates are led by very competent leaders. Big calls are most likely going to be made by Choi Gee-sung, he’s the top lieutenant at the conglomerate and a mentor to Lee. “Choi is very experienced and has done a good job. He is the one best placed to manage group-level affairs in Lee’s absence,” said one Samsung insider quoted in a Reuters report.
Another executive at Samsung’s future strategy office, the control tower of the conglomerate, said that everything has virtually stopped and that they are mainly focusing on the prosecutor’s investigation into Lee and the company. “We’ll be running an emergency plan and everything will be under Choi’s control for now,” the unnamed executive added.
However, with Choi also under investigation by special prosecutors, some believe that even his role might be limited and that Samsung might have to lean more on the top management of each of its affiliates. Since it has already been decided to dismantle the strategy office once the investigation concludes, Choi’s role in the management of the conglomerate’s affairs is likely to decrease.
Samsung declined to comment on this report so it has nothing to say right now about its management plans in Lee’s absence or Choi’s role.
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