Samsung to tighten control over donations following arrest of vice chairman Lee

Future Strategy Group's top officials vice chair Choi Ji-sung and president Chang Choong-ki will resign from their post to take responsibility for Lee's detention.

Until now, only spending that exceeded 0.5 percent of the company's equity, roughly 680 billion won, had to be submitted for board approval.

From today, Samsung requires all donations over 1 billion won ($883,680) to be approved by the board of directors and for payments to be shared publicly via South Korea's financial regulator.

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The company says those steps will "enhance the transparency of the management of such donations and funds and to strengthen the compliance" - making it more accountable by allowing transfers to be scrutinized by outside parties.

Two senior executives from electronics giant Samsung Group are taking responsibility for their involvement in the company's ongoing bribery scandal by offering to resign, according to a South Korean news agency.

Samsung Electronics announced a slew of measures on Friday meant to improve transparency in its social contribution program, after the company was found to have donated money to a friend of President Park Geun-hye allegedly in exchange for political favors.

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"Samsung Pay service is actually flawless for the country because Malaysia has its national e-payment strategy with the ultimate goal of becoming a cashless society", said Lee.

Jay Y. Lee, leader of Samsung Group and Samsung Electronics' vice chairman, was arrested last week after being named a suspect by the South Korean special prosecutor's office.

Were these executives to leave too, Samsung could be in trouble. As such, his exit could throw the top leadership in chaos.

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Lee also faces charges of perjury and embezzlement. Choi has played the role of mentor to the Samsung heir. This move from Samsung is hardly surprising, considering that the company will naturally look to clear its name and regain customer trust after going through a corruption scandal of epic proportions.


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