Samsung chairman's resignation may mark the beginning of the end for chaebols

24 April 2008

The chairman of South Korea's South Korea's biggest conglomerate, Samsung, Kun-Hee Lee, one of South Korea's richest men, has resigned within a week of being charged with  evading $113 million in taxes and breach of trust.

The electronics and semiconductors maker is one of South korea's most powerful and respected organisations with annual profits of over $12.9 billion.

The charge against Lee follows a three-month investigation into allegations of corruption and using illegal accounting techniques to transfer control of the business to his son.

Though the investigations cleared the firm of a former executive's allegations that Samsung had used  a multi-million dollar slush fund to bribe prosecutors and judges, prosecutors had indicted him with tax evasion last Thursday.

However, prosecutors did not formally arrest the 66-year-old Lee, saying he would remain free pending his trial.

Earlier during the investigations, Lee had denied any wrongdoing, while saying that he assumed responsibility and would even consider stepping down.