Hanssem Implements Organizational Restructuring Following Slush Fund Allegations Report

Ghost Advertising Agency Raises 4 Billion Won Report Sparks Overhaul Within a Week
Related Personnel Suspended, PR Team Downsized

Hanssem Sangam Building.
Photo by Hanssem

[Asia Economy Reporter Kim Jong-hwa] Hanssem carried out an organizational restructuring just one week after a broadcast report revealed that it had created slush funds exceeding 4 billion won through a phantom advertising agency.

According to Hanssem on the 9th, in the organizational restructuring carried out on the 5th, the head of external cooperation (executive director) and the head of external public relations team (manager), who were mentioned as key figures in the report, were suspended from their duties. Accordingly, the external cooperation office was disbanded, and the external public relations team, which was in charge of media relations, was downsized into the public relations team under the corporate culture office.

Therefore, Kim Jun-hyun, head of the corporate culture office (senior executive director), will oversee the public relations line. The new head of the public relations team is Kim Dong-sung, who led the team before the suspended head of the external public relations team, and he will lead the team again after five years. As the public relations team was downsized, some employees moved to the sustainability management part under Lee Young-sik, head of strategic planning office (vice chairman), where they are responsible for social contribution and sustainability management.

A Hanssem official said, "Since suspicions have been raised, it seems they judged that it is impossible for the two individuals to continue performing their duties regardless of the facts," adding, "It appears they are trying to renew the atmosphere through the organizational restructuring."

Hanssem also conducted an internal investigation before the restructuring, replacing all laptops of employees belonging to the external cooperation office and having them work in a separate space. Regarding this, a Hanssem official explained, "This is a measure to prevent evidence destruction such as leaks and tampering in preparation for the police investigation," and added, "The collected laptops are all preserved and stored in preparation for the police investigation."

Meanwhile, when allegations surfaced on the 29th of last month that Hanssem had created slush funds exceeding 4 billion won through a phantom advertising agency, the company denied the claims, stating, "This is completely untrue." However, just a week later, it carried out an organizational restructuring to initiate internal reform. In relation to this, the police are conducting an internal investigation, suspecting that work orders were concentrated on a non-existent company or that sponsorship funds were embezzled and used for other purposes.

This content was produced with the assistance of AI translation services.