In the article "Dark Days For The Empire" published this Sunday, Newsweek writes, "Samsung (often called the Republic of Samsung, thanks to its dominant role in the South Korean economy) is at the vortex of a swirling corruption scandal set in motion last month by the group's former chief attorney, Kim Yong-chul."

It continues, "South Korean President Roh Moo-hyun announced that he would appoint a special investigator to probe the nation's largest conglomerate. Hours later, several senior Samsung execs, among them the group's 65-year-old chairman, Lee Kun-hee, were reportedly barred from leaving the country."

Despite Samsung's flat denial of Kim's allegations, the scandal could have dire effects for the conglomerate's controllers, Newsweek says. "It's clear that Samsung's ruling family is caught in an existential struggle over control of an empire worth up to $300 billion."

"The scandal will affect 'not just [Samsung's] corporate governance, but also its ownership structure,' forecasts shareholder-rights activist Jang Ha Sung, dean of the business school at Korea University. One possibility, he says, is 'Samsung's breakup into separate financial and industrial groups,'" Newsweek writes.

(englishnews@chosun.com )