Samsung Compliance Monitoring Committee Launches 'Compliance Violation Report' Website... Member Kwon Tae-seon Resigns (Comprehensive)

Kim Ji-hyung: "Failure of the End of War Does Not Determine Future Failures... The Committee Will Commit Everything"
Reports Accepted Not Only Through Website but Also Externally... "Protecting Whistleblower Anonymity"
Compliance Oversight Committee: "Some Members of the Environmental Movement Federation Led by Rep. Kwon Oppose Compliance Oversight Activities"

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 Committee, officially launched earlier last month, has unveiled its website and will accept online reports related to compliance violations by the top executives of Samsung's seven affiliates.

The Compliance Committee launched its own website at 3 p.m. on the 23rd. The website is composed of ▲Introduction to the Committee ▲Chairman and Members Introduction ▲Committee Authority and Role ▲Announcements and News ▲Reporting Guide.

In his greeting on the website, Chairman Kim Ji-hyung stated, "The spirit of 'rule of law,' not rule by people, must be the foundation of management principles not only in countries or local governments but also in corporations," adding, "The old mindset of 'How can we manage business while fully complying with the law?' must now be discarded." Chairman Kim emphasized, "The shift in thinking that sustainable business can only be maintained by managing with strict compliance should mark the new beginning of compliance management."

Chairman Kim also expressed the committee's mission by saying, "The Compliance Committee regards transforming Samsung's compliance culture as its fundamental duty." He noted, "There will be a significant gap between the 'past' and 'future' of Samsung's compliance management," and added, "The committee will devote all its efforts to reducing conflicts, expanding reconciliation, and building trust between these two."

Regarding criticisms from some civil society sectors predicting failure, as Samsung Group had previously failed to address issues related to labor unions, succession, and communication despite proposing various alternatives, Chairman Kim responded, "Past failures do not determine future failures," and pledged, "The committee has been given a rare second chance. We will stake everything on 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 great change together."

Greeting from Kim Ji-hyung, Chairman of the Samsung Compliance Committee

[Image= Samsung Compliance Committee Homepage]

The Compliance Committee plans to accept reports related to compliance violations by the top executives of each affiliate via mail, email, the committee's website, as well as external submissions. External submissions will be handled by the Korea Institute of Corporate Ethics Management, a nonprofit organization. Founded in 2001 by Kim Jeong-nyeon, Emeritus Professor at Seoul National University Business School, the institute specializes in ethical management research and supports ethical management for financial institutions and public organizations. The Compliance 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 fail to accept its recommendations or demands. A Compliance 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 affiliates again refuse the committee's repeated demands or recommendations, the committee plans to post this on the website and make it public externally." Recently, the Compliance Committee requested Vice Chairman Lee Jae-yong of Samsung Electronics and seven affiliates including Samsung Electronics, Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, Samsung C&T, Samsung Life Insurance, and Samsung Fire & Marine Insurance to state their positions within 30 days regarding labor unions, management succession, and communication with civil society.

Kwon Tae-seon Committee Member

Meanwhile, Kwon Tae-seon, co-representative of the Civil Society Organizations Solidarity Conference, resigned from his position as a compliance committee member last week. Kwon was appointed as a compliance committee member representing civil society. He is a former journalist for Hankook Ilbo and has served as deputy editor-in-chief, editor-in-chief, and publisher of The Hankyoreh newspaper. Currently, he serves as co-representative of the Korean Federation for Environmental Movements and the Civil Society Organizations Solidarity Conference.

A Compliance Committee official said, "We understand that Kwon resigned to reorganize his organization after some opposition arose from the Korean Federation for Environmental Movements regarding his activities on the Compliance Committee." The official added, "Kwon agreed with all activities of the Compliance Committee and expressed his hope that the committee will successfully fulfill its role in the future upon his resignation."

Launched with six external members and one internal member, the Compliance Committee plans to discuss the recruitment of new external members and candidates at its fourth meeting scheduled for the 2nd of next month.

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