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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 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

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.

"I don't see anything more than a change of people in charge. There's no change at all in the fact that (the Lee family) will remain the owner," said Oh Suk-tae, an economist at Citibank.

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 Co Ltd.

Shares in various company affiliates fell by between 4% and 8% 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.

The Samsung group has more than 250,000 employees and its annual revenues of £81 billion are around the same size as Singapore's GDP.