SEOUL – Tech giant Samsung Electronics Co Ltd said on Friday it will strengthen controls for financial support made to third-parties, after its vice chairman was arrested in a graft scandal that could topple South Korea's president.
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Samsung said it would now require financial payments of 1 billion won ($882,460) or more to be approved by the board of directors and publicly disclosed. Previously, only payments of 680 billion won or more to third parties were subject to board approval.
Jay Y. Lee, third-generation leader of Samsung Group [SAGR.UL] and Samsung Electronics' vice president, was arrested earlier this month after being named a suspect in a probe into an influence-peddling scandal that led South Korea's parliament to impeach President Park Geun-hye in December.
(Reporting by Se Young Lee; Editing by Stephen Coates)