'Sails Raised' Samsung Compliance Committee... Established Activity Regulations After 6-Hour Marathon Meeting

External Sponsorships, Internal Transactions Monitoring, and Merger Issues Must Also Be Reported to the Committee

Kim Ji-hyung, Chairman of the Samsung Compliance Committee, is presiding over the '1st Meeting of the Samsung Compliance Committee' held on the 5th at the Samsung Life Seocho Tower in Seocho-gu, Seoul. The Samsung Compliance Committee is an independent external organization established to eradicate illegal activities by executives and employees, including CEOs of major Samsung affiliates, and to strengthen compliance management. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Ki-min Lee] The Samsung Compliance Committee held its first meeting on the 5th and decided to monitor external sponsorship funds and various transactions of seven Samsung Group affiliates.

The Compliance Committee held its inaugural meeting in a marathon session from around 3 p.m. to 9 p.m. at the Samsung Life Seocho Tower in Seocho-gu, Seoul.

Attending the meeting were Chairman Kim Ji-hyung (former Supreme Court Justice, current representative lawyer at Jipyung), along with six external members including Ko Gye-hyun, Secretary General of the Citizens' Sovereignty Council; Kwon Tae-seon, co-representative of the Civil Society Organizations Solidarity Council; Kim Woo-jin, Professor of Business Administration at Seoul National University; lawyer Bong Wook; and Professor Shim In-sook of the Law School at Chung-Ang University. Also present were Samsung Electronics President Lee In-yong and compliance team leaders from the seven Samsung affiliates. After a long meeting, they established the "Regulations on the Establishment and Operation of the Samsung Compliance Committee." Additionally, the committee listened to explanations from the compliance team leaders regarding the current status of compliance monitoring.

Accordingly, Samsung Electronics and the other six Samsung Group affiliates must notify the committee in advance or afterward when conducting external sponsorships or internal transactions. Furthermore, mergers, initial public offerings, and various transactions and organizational changes involving affiliates and related parties must also be reported to the committee.

The committee has set up a reporting system and can provide opinions such as directly notifying the board of directors to prevent risks when the top management of affiliates is perceived to be at risk of violating compliance obligations. In addition, the committee can require reports to the board through compliance officers of related companies.

Kim Ji-hyung, Chairman of the Samsung Compliance Committee, is presiding over the 'Samsung Compliance Committee 1st Meeting' held on the 5th at Samsung Life Seocho Tower in Seocho-gu, Seoul. The Samsung Compliance Committee is an external independent organization established to eradicate illegal activities by executives and employees, including CEOs of major Samsung affiliates, and to strengthen compliance management. Photo by Kang Jin-hyung aymsdream@

In particular, if a violation of compliance obligations by top management occurs, the committee can demand investigations and corrective actions. If the company’s investigation is insufficient, the regulations include provisions allowing the committee to directly participate in the investigation.

Procedures and systems have also been established to ensure the committee’s effective operation. If the company does not accept the committee’s requests or recommendations, it must notify the committee with reasons. If the committee deems the reasons inappropriate, it can reissue recommendations, and if these are still not accepted, the related information can be disclosed on the website.

If deficiencies or inadequacies in the performance of compliance officers are detected, the committee can directly present opinions to the board of directors.

The committee also approved regulations on the establishment and operation of a secretariat to handle its practical affairs. The secretariat chief will oversee secretariat duties under the direction and supervision of Chairman Kim. Lawyer Shim Hee-jung, a corporate compliance expert and partner at the law firm Jipyung, was appointed as the secretariat chief.

Additionally, two lawyers, one accountant, and one communication specialist were dispatched from the affiliates’ compliance organizations. The same number of external members will be recruited. The term of committee members is two years, with the possibility of reappointment to ensure continuity of work.

The committee plans to hold its next meeting on the 13th to discuss major issues and current matters to be addressed by the committee.

Kim Ji-hyung, Chairman of the Samsung Compliance Committee, is presiding over the '1st Meeting of the Samsung Compliance Committee' held on the 5th at Samsung Life Seocho Tower in Seocho-gu, Seoul. The Samsung Compliance Committee is an external independent organization established to eradicate illegal activities by executives and employees, including CEOs of major Samsung affiliates, and to strengthen compliance management. Photo by Kang Jin-hyung aymsdream@

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