The economic backlash from the Far East economic turmoil continues, with South Korea's industrial giant, Samsung, announcing the closure of its regional offices.

The company will be shutting down head offices in London, New York and Singapore by the end of the month as it tries to weather Korea's deepening economic crisis.

The regional offices controlled Samsung's operations in America, Europe and Southeast Asia.

Regional offices to close

A spokesman for the group said the closures were prompted by restructuring resulting from the International Monetary Fund-led rescue of the South Korean economy.

Some staff responsible for coordinating operations in the three centres would be transferred to the company's headquarters in Seoul, he said.

Two weeks ago, the company announced it was cutting overseas production by up to 40% this year amid pressure to reduce its operation and borrowings.

Last month, it reacted to the recent financial turmoil in Asia by shelving plans for a £450 million investment on Teesside.

In November, the company was forced to close its hi-tech industrial plant at Flaxby Moor, near Knaresborough in North Yorkshire just two years after the £13 million factory was built.

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