Samsung plans greater transparency on financial donations

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.