Samsung Group official says operations uncertain after heir apparent's arrest

We turn our focus now to what that means for Korea's largest conglomerate.
A Samsung Group official says its operations are uncertain following the heir apparent's
arrest, casting a cloud over the group's future.
Here's our Shin Se-min.
It was a shocking decision that delivered a huge blow to Korea's largest conglomerate.
It's the first time that a Samsung Group chief executive has been arrested since the conglomerate
was established 79 years ago.
Samsung Group said in an official statement that they will do their best to uncover the
truth in future court proceedings.
Some 200 executives, including Choi Ji-sung, who are part of the Future Strategy Office
gathered early Friday morning for a meeting to launch an emergency management system.
But with the group's de-facto leader Lee Jae-yong, now behind bars,... the group's management
team is scrambling for its next move.
All matters that require Lee's approval will be halted,… at least this is according to
a group official.
That includes personnel management and, of course, the reorganization of the conglomerate,
including a possible shift of Samsung Electronics into a holding company structure.
That plan had been in the works since Lee became the group's de facto leader in 2014,…
after his father Lee Kun-hee had been hospitalized after a serious heart attack.
On top of that major investment plans like M&As the group had planned will also be put
on ice.
There are growing concerns that Samsung Electronics' bid to buy Harman International Industries
will be negatively influenced,… and the U.S. automobile parts manufacturer has already
scheduled a general meeting of its shareholders.
There are also lingering concerns that Lee's arrest will dent the Korean economy.
Shin Se-min, Arirang News.

Samsung Group official says operations uncertain after heir apparent's arrest

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