Samsung Apologizes to Shareholders for Involvement in Scandals

Samsung Apologizes to Shareholders for Involvement in Scandals

Samsung apologized for its involvement in scandals that’ve led to the ouster of South Korea’s president and the recall of its Note 7 smartphones, pledging to improve governance in the face of pressure from investors, according to Bloomberg.

Vice Chairman Kwon Oh-hyun delivered the apology at the smartphone maker’s annual shareholder meeting in Seoul. Jay Y. Lee, heir apparent at the smartphone giant, was absent as he remains in detention facing charges including bribery and embezzlement.

Prosecutors accuse Lee of bribing a confidante of former President Park Geun-hye in return for the government backing of a 2015 merger that helped him tighten control over the company. Samsung denies Lee did anything wrong and said court proceedings would reveal the truth. The fire-prone Note 7 was eventually killed off, with the debacle estimated to cost the company about $6 billion.

“I’m sorry for the scandal,“ Kwon said, maintaining that the company didn’t pay bribes in the form of donations. “I apologize once again for the mistake with the Note 7 last year. It was a failure that arose from trying new technology.’ Kwon added that the company isn’t considering a stock split and any move toward a holding company “doesn’t look easy“ at this time. Samsung is reviewing its options and looking at areas including legal and tax.