Samsung Compliance Monitoring Committee 2nd Meeting... Review of External Sponsorship Expenditure Details

Meeting on Compliance Issues within Samsung

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 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 Monitoring Committee held its second meeting to discuss key agenda items reported to the committee, including external sponsorship expenditures by seven Samsung affiliates.

The Compliance Monitoring Committee held its second meeting on the 13th from around 9:30 a.m. to 3:00 p.m. at the Samsung Life Seocho Tower in Seocho-gu, Seoul, discussing major issues going forward.

The committee’s second meeting was attended by external members including Chairman Kim Ji-hyung (former Supreme Court Justice, current lead attorney at Law Firm Jipyung), Ko Gye-hyun, Secretary General of the Citizens’ Coalition for Consumer Sovereignty, Kwon Tae-sun, co-representative of the Civil Society Organizations Solidarity Conference, and Bong Wook, former Deputy Chief Prosecutor of the Supreme Prosecutors’ Office (currently a lawyer), as well as Samsung Electronics President Lee In-yong. The meeting lasted about six hours, similar to the first meeting held earlier on the 6th of this month.

The Compliance Monitoring Committee first received reports from the compliance team leaders of each affiliate regarding the details of external sponsorship expenditures and planned expenditures, and reviewed them. This was done as a preliminary review to determine whether there were any illegalities in external sponsorship funds ahead of the respective board meetings scheduled for later this month.

At the first meeting, the committee decided that external sponsorships exceeding a certain amount would be subject to prior review before board approval, while amounts below that threshold would be reported after board approval.

The committee also explained that it discussed improvement plans related to the compliance programs of affiliated companies, which were heard during the first meeting. It is known that at the first meeting, compliance team leaders reported on cases of employee grievance reports.

Additionally, the committee stated that members exchanged opinions on specific compliance management issues proposed by the committee members on that day. Previously, the committee finalized regulations requiring each affiliate to report various transactions and organizational changes between related parties or special related parties to the committee. In particular, if illegal acts occur involving top executives including Samsung Electronics Vice Chairman Lee Jae-yong, the committee can demand investigation and correction of the matter, and if the investigation is insufficient, it can conduct a direct investigation. It appears that each member selected Samsung compliance issues and discussed how the Compliance Monitoring Committee should operate.

The third meeting of the Compliance Monitoring Committee is scheduled to be held at 2 p.m. on the 5th of next month.

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