Samsung Compliance Oversight Committee Chair: "Union and Succession Issues Will Be Monitored Without Exception"

Former Supreme Court Justice Kim Ji-hyung Announces Unrestricted Activities

Former Supreme Court Justice Kim Ji-hyung, appointed as the Chairman of the Samsung Group Compliance Committee (representative lawyer of Jipyung Law Firm), is holding a press conference on the 9th at the Jipyung office in Seodaemun-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Ki-min Lee] Seven major affiliates of Samsung Group, including Samsung Electronics, will be subject to compliance monitoring by the newly launched Compliance Oversight Committee.

The Compliance Oversight Committee, an independent body of Samsung, plans to focus on monitoring and correcting or sanctioning legal violation risks in the deliberations and resolutions of the affiliates' boards of directors and management committees. The committee has announced that it will take "appropriate measures" upon receiving reports of illegal acts by top management, signaling activities without any sanctuary.

Kim Ji-hyung, former Supreme Court Justice and representative lawyer of the law firm Jipyung, who serves as the inaugural chairman of the Samsung Compliance Oversight Committee, held a press conference on the 9th and stated, "Samsung accepted the demand to fully guarantee autonomy and independence from the committee's formation to its operation, and we received multiple pledges and assurances," outlining the operational direction based on this.

The Compliance Oversight Committee will proactively monitor potential legal violation risks among major resolutions and deliberations of Samsung affiliates' boards and management committees. Upon detection, it will conduct investigations and reporting procedures to request correction and sanctions. It will also play a role in devising measures to prevent recurrence of illegal factors.

The committee has signed agreements with seven major Samsung affiliates?Samsung Electronics, Samsung C&T Corporation, Samsung Life Insurance, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, and Samsung Fire & Marine Insurance?and will officially commence compliance monitoring activities. Former Justice Kim explained, "We will supervise to ensure that the affiliates' compliance programs or systems operate properly," adding, "Within the necessary scope, we will request reports, submission of materials, and actions from compliance officers of the affiliates."

He continued, "We will directly recommend or provide opinions to the boards on the establishment of compliance policies and plans, as well as improvements to compliance programs or systems, and will continuously monitor their implementation."

The Compliance Oversight Committee also introduced measures to ensure that Samsung affiliates' boards accept its demands and recommendations. Former Justice Kim said, "If the (affiliate board) does not accept these, they will notify the committee with reasons," adding, "If the committee makes a re-request or re-recommendation and it is still not accepted, we plan to publicize this by posting it on the committee's website."

In particular, the committee plans to operate without any restrictions on fields or sanctuaries. Former Justice Kim stated, "It will not be limited to areas such as fair trade issues including external sponsorships with legal violation risks, internal transactions with affiliates or related parties, subcontracting transactions with partner companies, or preferential treatment of orders, nor to corruption issues such as bribery or improper solicitation," adding, "Legal violation risk management in matters like labor unions or succession issues will also not be exempt."

Furthermore, he emphasized, "The committee will directly investigate legal violation matters as needed," and "We will establish a system where reports of illegal acts by the company's top management are immediately received by the committee." He added, "We will also prepare procedures to take necessary measures when detecting legal violation risk factors or violations, and recommend appropriate job training programs required for effective compliance monitoring of affiliates."

In addition to former Justice Kim, external members appointed to the Compliance Oversight Committee include ▲ Ko Gye-hyun, founding secretary-general of the Citizens' Coalition for Consumer Sovereignty ▲ Kwon Tae-seon, co-representative of the Civil Society Organizations Solidarity ▲ Kim Woo-jin, professor of Business Administration at Seoul National University Graduate School of Business ▲ Bong Wook, former deputy chief prosecutor of the Supreme Prosecutors' Office ▲ Shim In-sook, professor at Chung-Ang University Law School. The internal member from Samsung is Lee In-yong, senior advisor for social contribution at Samsung Electronics.

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