South Korea's most powerful businessman said this morning he would step down after 20 years at the head of the giant Samsung Group following his indictment last week for tax evasion and breach of trust.
The televised announcement by Lee Kun-hee (66) who has achieved almost heroic status in South Korea for his role in the fortunes of Samsung, came as a shock even in a society long used to its top businessmen being hauled into court.
But analysts pointed out Mr Lee and his family still control the country's largest conglomerate, sometimes dubbed the "Republic of Samsung" and whose dozens of affiliates account for around a fifth of South Korea's exports. The group's products range from computer chips and handphones to supertankers.
"I will step down from the Samsung chairman position today. I am saddened as there is still much to do and a way to go," an apologetic but expressionless Mr Lee said in a brief statement broadcast on national television.
The group will dismantle its powerful strategic planning office, which critics say is an opaque organisation able to wield influence across some 60 affiliates, including flagship company Samsung Electronics, a world leader in computer memory chips and flat display screens.
Mr Lee's son, Lee Jae-yong, seen as being groomed to take over, will step down from his executive post and work abroad for the group in another, unspecified role.
Four other top executives also quit, including the head of the group's strategic division and the CEOs of Samsung Fire and Marine Insurance and Samsung Securities.
Shares in affiliates such as Samsung Securities and Samsung Construction & Trading fell by 4-8 per cent on the news, that stunned markets and a public fascinated by the reclusive Lee, one of South Korea's richest men and most revered business leaders.
Samsung group firms account for 20 per cent of total market capitalisation on the main board of the South Korean bourse.
The group has more than 250,000 employees and its annual revenues of $160 billion are around the size of Singapore's GDP.