Samsung Group officially announced Tuesday to revamp its management, including the abolition of its key Future Strategy Office that came under the spotlight for arranging donations to President Park Geun-hye and her friend Choi Soon-sil in return for alleged favors.

Following the shutdown of the group’s control tower, each affiliate of South Korea’s largest conglomerate will be responsible for long-term investment plans as well as running day-to-day operations.

Future Strategy Office that started out as a personal secretary office for the group founder Lee Byung-chull in 1959 closed down in June 2008 when the conglomerate came under prosecution probe on bribery charges. It was reactivated as the control tower of the group in December 2010. Top executives vice chairman Choi Ji-sung and president Chang Choong-ki, as well as heads of all seven departments under the strategy office, will resign from their post.

In addition, Samsung will no longer be able to use the nameplate Samsung Group as affiliates belonging to the group will run on an autonomous management system. The weekly meeting where chief executives of all affiliates under the group gather together every Wednesday will be abolished and the group-wide recruitment process will be transferred to each subsidiary from the second half this year.

Industry observers predict Samsung will have Samsung Electronics, Samsung Life Insurance, and Samsung C&T to lead discussion on making major business decisions from now on.

Park Sang-jin, Samsung Electronics president for corporate relations and head of Korea Equestrian Federation, also resigned from his post and all staffs of the Korea Equestrian Federation were reassigned to their original divisions. The group is charged with concealment of criminal proceeds regarding the purchase of a horse for Choi Soon-sil’s equestrian daughter under a false contract to make it look like a deal to support the entire dressage industry.

Earlier this month, Jay Y. Lee, vice chairman of Samsung Electronics and de facto leader of Samsung Empire, was arrested for his alleged role in a corruption scandal involving the impeached president.

Shares of Samsung Electronics closed Tuesday at 1,922,000 won ($1,694.89), up 19,000 won or 1 percent from the previous session. Shares of Samsung Life Insurance finished up 1.42 percent at 107, 000 won while those of Samsung C&T ended down 1.6 percent at 123,000 won.

By Song Sung-hoon

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