Mar 27, 2017 12:43 AM EDT
Samsung Electronics says sorry for its involvement in the scandal that led to South Korea's president being impeached. CEO Jay Y. Lee was accused of bribing Choi Soon Shil, a long-time confidante of former president Park Geun Hye, in return for government support for a deal.
During Samsung's annual meeting in Seoul, chief executive Kwon Oh-hyun apologized for the company's involvement in the scandal. It can be remembered that former president Park Geun Hye allegedly colluded with her friend Choi Soon Shil to extort millions of dollars from big conglomerates under the guise of donations to two foundations controlled by Choi. Further, Park also abused her power by letting Choi meddle in state affairs.
Samsung's Lee, who is currently awaiting jail time, has vehemently insisted that the money was given as a goodwill donation. Unlike the accusations brought against him, Lee contested that the money was not given in return for government support for a merger of two Samsung subsidiaries that will pave way for his succession. The company, on the other hand, has pledged to improve its corporate governance following the scandal and Samsung Note 7 recall.
The South Korea-based company also addressed the fallout from last year's failure of the Samsung Note 7 in which it had to abandon production of the smartphone after several of them was caught in a fire. "I apologize once again for the mistake with the Note 7 last year. It was a failure that arose from trying new technology," Kwon said. The Note 7 fiasco cost the company around $6 billion.
Samsung Electronics, on Friday, also announced that it would not be changing its corporate structure to use a holding company. Investors have expected the global leader in smartphones to adopt a holding company structure as the founding Lee family tries to solidify its control of the Samsung Group. But Kwon notes the negative effects that would arise from transitioning to a holding company without further elaboration on what those effects would be.
The company is continuing its review and will report the results to shareholders when it is completed. Meanwhile, the comment sent shares of Samsung C&T Corp down more than seven percent in afternoon trade. Analysts believed the Lee family would soon seek to merge with C&T Samsung Group's de facto holding company that Lee heirs control, with the Samsung Electronics holding company.
Retailers can manipulate consumer regret to beat competitors
The French luxury group gains full control of the 70-year-old Parisian fashion house Christian Dior in a mammoth deal worth around €12.1 billion.
UK luxury fashion retailer Burberry posts lackluster set of results for its second half following an impressive result in the third quarter, a retail analyst stated.
What seemed like a perfect hacking operation turned out to be a failure as Kaspersky has spotted a mistake on the part of the Lazarus hackers. It found a brief connection that came from North Korea - proving their identity and origin.
A lawsuit has been filed by a Democratic political consultant and Fox News contributor on Monday alleging, among others, that Roger Ailes denied her of a permanent hosting job after she turned down his sexual advances.
South African leader, Jacob Zuma, has sacked finance minister Pravin Gordhan in a move that drove the country's currency down five percent in value. The president calls for a midnight reshuffle in his Treasury members who he felt were disloyal to his political intentions.
The US president has long promoted a change on how foreign businesses should run their operations - and that is to revive American manufacturing. Uniqlo head showed he didn't like being given an ultimatum by Trump.
Cemex, one of the world's largest cement producers, has not participated in the first round of bids that is currently underway but said it is open to providing quotes to supply the raw materials for Trump's promised border wall.
Arket, which means 'sheet of paper' in Swedish, will cater to a modern-day market with products for men, women, children and the home.