Samsung Compliance Monitoring Committee Launches Official Website… Kim Ji-hyung: "The Committee Will Stake Everything"

CEO Compliance Obligation Violation Report Website Receives External Submissions as Well... "Protection of Whistleblower Anonymity"

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@

[Asia Economy Reporter Ki-min Lee] The Samsung Compliance Committee launched its website just two months after its inception and is now accepting online reports related to compliance violations by the top executives of Samsung’s seven affiliates.

The Compliance Committee unveiled its official website at 3 p.m. on the 23rd. The website is organized into sections including ▲Introduction to the Committee ▲Chairman and Members Introduction ▲Committee Authority and Roles ▲Announcements and News ▲Reporting Guidelines.

First, in his greeting on the website, Chairman Kim Ji-hyung stated, “The spirit of the ‘rule of law,’ not the rule of people, must be the foundation of management principles not only in nations or local governments but also in corporations,” adding, “The old mindset of ‘how can we manage a business while fully complying with the law?’ must now be discarded.” Chairman Kim emphasized, “A paradigm shift to ‘managing business by properly following the law’ should mark a new beginning for compliance management.”

Chairman Kim also expressed the committee’s mission by saying, “The Compliance Committee considers it its duty to transform Samsung’s compliance culture anew.” He noted, “There will be a significant gap between the ‘past’ and the ‘future’ of Samsung’s compliance management,” and added, “The committee will devote all its efforts to reducing conflicts between these and expanding reconciliation while building trust.”

Regarding criticisms from some civil society groups that the committee will fail as Samsung Group had previously failed to address issues related to labor unions, succession, and communication despite proposing various alternatives, Chairman Kim responded, “We will stake everything on this.” He promised, “Past failures do not determine future failures. The committee has been given a rare second chance. We will put everything on the line for this opportunity.”

Furthermore, he appealed for societal cooperation, stating, “The Compliance Committee cannot travel this long road alone.” Chairman Kim urged, “The fastest path to change is through the combined efforts of Samsung employees and our society. Let us all create a great transformation together.”

The Compliance Committee plans to accept reports related to compliance violations by the top executives of each affiliate via mail, email, the website itself, as well as external submissions. External submissions will be handled by the Korea Institute of Corporate Ethics Management, a specialized research institute established in 2001 to support ethical management in financial institutions and public organizations. The committee explained, “We have taken thorough measures to protect the anonymity of whistleblowers.”

The committee also intends to post on its website if affiliates repeatedly refuse to accept its recommendations or demands. A committee official explained, “If Samsung affiliate executives and boards of directors find it difficult to accept the committee’s demands or recommendations related to compliance management, they are required to notify the committee with reasons. If the affiliates again refuse the committee’s repeated demands or recommendations, the committee plans to post this on the website and publicly disclose it.”

Meanwhile, the Compliance Committee, which was launched in January this year, recently requested that Vice Chairman Lee Jae-yong of Samsung Electronics and seven related companies?Samsung Electronics, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung C&T, Samsung Life Insurance, and Samsung Fire & Marine Insurance?respond within 30 days regarding issues related to labor unions, management succession, and communication with civil society.

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