Samsung's Lee chides presidents for Techwin audit

Lee Kun-hee, chairman of Samsung Electronics Co. and head of Samsung Group, reprimanded company presidents Wednesday for the group's internal audit result of a defense and precision machinery unit, a high-ranking group official said. The chief executive officer of Samsung Techwin Co., Oh Chang-suk, offered to resign, taking responsibility for the audit result, Rhee In-yong, a senior vice president and chief spokesman of the conglomerate, told reporters in a briefing. The result of the internal audit and what prompted the company to undertake an internal inspection was not immediately known. Rhee denied reports that the audit was linked to the latest problems with the K9 self-propelled howitzer manufactured by Samsung Techwin. The audit did not find illegal activities, but discovered executives and employees guilty of improper conduct, another company spokesman, Park Hyo-sang, said. "Samsung's clean corporate culture has been tarnished," Lee was quoted as saying at the weekly executive meeting. "Irregularities should be rooted out." Lee, the group founder's son, chided Samsung executives for the lack of oversight and insufficient countermeasures against corruption. He called for appropriate penalties and ordered executives to beef up the auditing team. Samsung Techwin will soon announce when it will hold its board meeting to find a new chief.