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Samsung Electronics introduced new rules on Friday for declaring financial donations to increase transparency after its heir apparent has become embroiled in a corruption scandal.

The South Korean company said all financial donations and funding for corporate social responsibility activities above Won1bn ($882,700) will require approval from its board of directors. This represents a cut from the previous threshold for declaring endowments of more than 0.5 per cent of shareholder equity, which currently stands at Won680bn.

Samsung’s heir apparent Lee Jae-yong was arrested earlier this month, accused of bribery and other charges as part of a scandal linked to the impeachment of South Korean president Park Geun-hye.

The company will disclose details of donations through South Korea’s financial regulator as well as include the information in its quarterly reports.

Copyright The Financial Times Limited 2017. All rights reserved.
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