23:46 GMT +321 January 2020
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    Electronics giant Samsung Electronics announced on Friday it would tighten the rules on how it approves donations and monetary support after the company found itself at the heart of a corruption scandal.

    MOSCOW (Sputnik) — The announcement came a week after Samsung Electronics vice chairman and heir to the Samsung Group, Lee Jae-yong, was arrested on suspicion of having paid millions into a foundation that belongs to a close friend of country’s impeached president, in return for concessions.

    "All financial donations and CSR funding amounting to more than 1 billion won [$885,450] will require the approval from the company’s Board of Directors," the South Korean tech giant’s statement read.

    The approval of the company’s Board of Directors, which mostly comprises independent members, is currently needed for endowments of more than 680 billion won ($602.2 million).

    Samsung Electronics also vowed to disclose details of the financial donations in quarterly business reports and annual sustainability reports.

    A Review Council comprised of the head executives of legal, financial, human resources and communication departments will be set up to look into proposed projects, estimated at over 10 million won ($8,852).

    President Park Geun-hye’s confidante Choi Soon-sil is on trial on allegations of influence-peddling and meddling in state affairs. The corruption scandal has led the Korean parliament to impeach Park and brought thousands of protesters to the streets in the past months.

    Related:

    Samsung Chief Arrested Amid Investigation Into South Korean Corruption Scandal
    Samsung Boss Returns for Questioning in South Korea Corruption Probe
    S.Korean Prosecutors to Question Samsung Heir on Monday Over Bribery Scandal
    Tags:
    corruption scandal, chief executive, donation, arrest, Samsung, Lee Jae-yong
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