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

Former Supreme Court Justice Kim Ji-hyung Announces Unrestricted Activities... "Received a Promise from Vice Chairman Lee Jae-yong"

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. As an independent body of Samsung, the Compliance Oversight Committee plans to focus on monitoring legal violation risks in the deliberations and resolutions of affiliate boards and management committees, and on correction and sanctions. 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 the inaugural chairman of the Samsung Compliance Oversight Committee (and lead attorney at the law firm Jipyung), held a press conference on the 9th and outlined the operational direction, stating, "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."

Regarding this, former Justice Kim said, “I thought it was necessary to have a firm commitment from the group’s head on whether there is a genuine will for compliance management and whether the Compliance Oversight Committee can be operated as a body with complete autonomy and independence,” adding, “I met directly with Samsung Electronics Vice Chairman Lee Jae-yong and obtained a promise.”

The Compliance Oversight Committee will preemptively monitor factors that pose legal violation risks among major resolutions and deliberations of Samsung affiliate boards and management committees. If such risks are found, the committee will conduct investigations and reporting procedures and demand 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, 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 affiliates’ compliance monitoring programs or systems operate properly,” and “within the necessary scope, we will request reports, submission of materials, and actions from affiliate compliance officers.”

He continued, “We will directly recommend or provide opinions to the boards on the establishment of affiliates’ compliance monitoring policies and plans, as well as on improvements to compliance monitoring programs or systems, and will continuously check on their implementation.”

The Compliance Oversight Committee also introduced measures to ensure that Samsung affiliate boards accept its demands and recommendations. Former Justice Kim said, “If the affiliate board does not accept them, the reasons will be specified and notified to the committee,” adding, “If the committee makes a re-request or re-recommendation and it is still not accepted, we plan to publicize it by posting 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 like 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 like bribery or improper solicitations,” and added, “Legal violation risk management in matters such as labor unions or succession issues will also not be exceptions.”

Furthermore, he emphasized, “The committee will directly investigate legal violation matters as needed,” and “a system will be established for the committee to receive reports immediately regarding illegal acts by the company’s top management.” He added, “Procedures will also be established to take necessary measures when legal violation risk factors or violations are detected, and appropriate job training programs required for effective compliance monitoring of affiliates will be recommended.”

In response to concerns about whether a small number of committee members can properly carry out compliance monitoring tasks using information provided by Samsung, he said, “A separate secretariat will be established to support the committee,” and “it will be operated with sufficient independence under the committee’s direction.”

When asked whether the committee could file criminal charges if serious illegal matters remain unimproved despite correction and sanction demands and disclosure on the website, he retorted, “Is there any reason not to file charges?”

Besides former Justice Kim, external members of the Compliance Oversight Committee from the legal, civil society, and academic sectors include ▲ Ko Gye-hyun, founding secretary-general of the Citizens’ Sovereignty Conference ▲ Kwon Tae-seon, co-representative of the Civil Society Organizations Solidarity Conference ▲ 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. Samsung’s internal member is Lee In-yong, senior advisor for social contribution at Samsung Electronics.

The Compliance Oversight Committee plans to officially launch at the end of this month after the seven affiliates each pass board resolutions related to the agreements and committee operation regulations.

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