Samsung Group to dismantle planning office
SEOUL, June 25 (Reuters) - South Korea's top business group Samsung [SAGR.UL] said on Wednesday it would dismantle its strategic planning office at the end of June and introduce a looser grouping of top management to assume its role.
Samsung Group chief Lee Kun-hee stepped down in April following his indictment for tax evasion and breach of trust and promised a mangement shakeup. Samsung previously said it would dismantle the powerful strategic planning office to give its companies more transparency and autonomy.
Critics have said the office is an opaque organisation wielding influence across some 60 affiliates including flagship Samsung Electronics Co Ltd (005930.KS).
Lee Hak-soo, who headed the strategic planning office, will be named an advisor for Samsung Electronics, Samsung said in a statement.
"Leading companies in each industry will be in charge of making collective decisions and creating synergy," it said.
Samsung Electronics, a world leader in memory chips and flat display, and Samsung Life Insurance, South Korea's top life insurer, will assume the coordinating roles in the electronics and financial businesses, respectively.
At the same time Samsung will introduce regular meetings of chiefs from its affiliates to discuss key issues and oversee investment deals and brand management.
Group-wide investments by Samsung companies are set to reach 27.8 trillion won ($27 billion) this year, up 24 percent from 2007, Samsung Group said in April. ($1=1028.7 Won) (Reporting by Rhee So-eui; Editing by Keiron Henderson)
