Samsung Group is expected to undergo major organizational reshuffle under the command of Jay Y. Lee, Samsung Electronics Co. vice chairman and heir apparent to South Korea’s largest conglomerate, earlier than expected, after Lee pledged to dismantle its Future Strategy Office, the group’s control tower that often serves as a private secretary for the owner family.

It has been widely expected that the group would embark on the reorganization process next year after completing overhaul in its corporate governance structure under Lee who recently became a registered managing director of the board at Samsung Electronics. He has been running Korea’s top conglomerate on behalf of his father who was hospitalized in May 2014.

But the group now faces a change in its initial plan after Lee said in a parliamentary hearing held on Tuesday that the group would do away with the Future Strategy Office amid growing public criticism over its alleged shady role in supporting nonprofit organizations founded by President Park Geun-hye’s friend Choi Soon-sil who has been indicted for pressing companies to make donations to her two nonprofit funds. The hearing was held to unfold stories behind the country’s unprecedented power abuse scandal involving the President, her close friend Choi and aides.

An unnamed official from Samsung Group said Lee’s remarks were not made out of blue, as the group has been contemplating whether to downsize or disband the controversial office for the last few months. Lee’s conclusion to do away with the office came after months of consideration, the official emphasized.

Another official from Samsung Group who asked to be unnamed expected the Future Strategy Office would be dismantled sometime around next April when the special investigation into the Choi Soon-sil scandal is expected to draw to an end. Speculation is looming that it could be either downsized to be put under Samsung Electronics or completely vanished, the official added.

Industry insiders expect the upcoming organizational change would accelerate not only the generational shift in the group but also the process of transforming Samsung into a holding company. Recently, Samsung Electronics announced it is considering whether to split the company into holding and operation entities as part of measures to improve shareholder value.

By Song Sung-hoon and Lee Dong-in

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]