Samsung Group implicated in bribery charges with the president and her inner circle announced Monday that it was dismantling scandal-ridden Future Strategy Group and bolt out of chaebol lobby group Federation of Korean Industries (FKI).

“Samsung will disband the Future Strategy Group as promised (at the parliamentary hearing) after probe by independent counsel formerly ends,” said a Samsung Group official declining to be named. Reorganization is already under way, he added.

Jay Y. Lee, Vice Chairman of Samsung Electronics Co. and heir-apparent to South Korea’s largest conglomerate, faces court trial on bribery charges filed by an independent counsel probing influence-peddling scandal involving President Park Geun-hye and her friend Choi Soon-sil.

The independent counsel accused the Future Strategy Group that acts as a private secretariat for the owner family overseeing their riches as well as group affairs of using corporate funds to contribute donations to organizations created by Choi and financing her family. The younger Lee that has been representing the group on behalf of his bedridden father Lee Kun-hee is also charged of requesting help from the National Pension Service to back merger between Samsung C&T and Cheil Industries in 2015 to cement his financial and legitimate hold over the group after a tete-a-tete with the president who reportedly directly demanded donation from the group.

The Future Strategy unit is the top commanding tower of the conglomerate with combined worth of 300 trillion won ($264 billion). It has five presidents apart from top chief and vice chairman Choi Ji-sung and 200 staffs. Except for minimum secretariat work, staff and function would spread out to Samsung units, the official said.

Separately on Monday, Samsung Electronics was first among the group to notify discharge from the FKI that came under fire for its go-between role of arranging donations for Choi and the president. Other units Samsung SDI Co., Samsung SDS Co., Samsung Electro-Mechanics Co., Samsung Display Co. and Samsung Life Insurance Co. will follow suit.

The once-mighty interest group for chaebols founded in 1961 has become a white elephant upon losing household corporate names. LG Group was first to divorce from the group last month.

As of 2:00 p.m. on Tuesday, shares of Samsung Electronics dropped 1.82 percent to 1,942,000 won from previous session in Seoul trading.

By Song Sung-hoon

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