Lee Jae-yong's Shocking Public Apology: "I Will Not Give Management Rights to My Children" (Comprehensive)

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Samsung Electronics Vice Chairman Lee Jae-yong is making a public apology on the 6th at the Seocho-dong headquarters regarding succession of management rights, non-union management, and communication with civil society. Photo by Moon Ho-nam munonam@

[Asia Economy Reporters Hyewon Kim and Gimin Lee] Samsung Electronics Vice Chairman Lee Jae-yong’s public apology on the 6th, in which he for the first time stated that he would not pass on management rights to his children, is seen as an effort to resolve the ongoing controversy over succession of management rights.

Vice Chairman Lee also clearly expressed his intention to abandon Samsung Group’s policy of “no labor unions.” This is the first time in five years that Vice Chairman Lee has bowed his head before the public, since apologizing in June 2015 for Samsung Seoul Hospital’s responsibility during the Middle East Respiratory Syndrome (MERS) outbreak.

On that day, he held a press conference at the multipurpose hall of Samsung Electronics’ Seocho Building in Seocho-gu, Seoul, and declared regarding the succession of management rights, “From now on, I will ensure that no further controversy arises over the issue of succession of management rights,” adding, “I will not resort to any irregular methods or do anything that would be ethically condemned.”

He emphasized, “I do not intend to pass on the company’s management rights to my children,” and added, “The business environment is tough, and I thought it would be irresponsible to mention succession before I myself am properly evaluated, so although I have wanted to keep this in my heart for a long time, I was afraid to reveal it externally.”

Vice Chairman Lee said, “I will ensure that no controversy arises in the future regarding management rights, and I will never break the law,” and “I will focus solely on increasing the company’s value.”

Regarding the management environment surrounding Samsung, he explained, “Competition is becoming fiercer and the market’s rules are rapidly changing,” and “Crisis is always by our side, and the future is unpredictable.”

He continued, “Samsung must continue to recruit excellent talent regardless of gender, academic background, or nationality. Those talents should work fiercely with a sense of ownership and mission and lead the business in positions more important than mine,” and “I believe that is the responsibility and mission entrusted to me.”

In addition to his remarks on succession of management rights, Vice Chairman Lee also announced his intention to officially abolish the “no labor union” policy that Samsung has maintained for 82 years since its founding. Regarding labor-management issues, he said, “Samsung has failed to meet the times in labor-management matters,” and “Many employees are currently on trial related to Samsung Everland and Samsung Electronics Service cases, and I deeply feel responsible and sincerely apologize to all those who have been hurt by Samsung’s labor union issues.”

He added, “I will ensure that the term ‘no labor union management’ will no longer be used at Samsung,” and “We will strictly comply with labor-management laws, firmly guarantee the three labor rights, and promote labor-management harmony and coexistence.”

Furthermore, Vice Chairman Lee responded to the Compliance Committee’s criticism that Samsung has lacked communication with civil society by saying, “Civil society and the media have the fundamental role of monitoring and checking, and they are mirrors that reflect faults that companies themselves cannot see,” and “We will listen openly to external criticism and advice and take a humble step forward.”

Additionally, Vice Chairman Lee pledged to continue guaranteeing the activities of the Samsung Compliance Committee. He declared, “I will reaffirm compliance myself and ensure that compliance is firmly rooted in Samsung,” and “Even after my trial ends, the Samsung Compliance Committee will continue to operate independently without interruption.”

Regarding the novel coronavirus disease (COVID-19) crisis experienced since early this year, Vice Chairman Lee also shared his thoughts. He said, “During the unprecedented crisis over the past two to three months, I deeply felt what true national dignity means,” and “I felt immense pride seeing medical staff risking their lives to protect life, volunteers stepping forward for the community, and many citizens practicing consideration and sharing for neighbors in need.”

Finally, he pledged, “As a member of the business community, this has made me reflect on many things, and my shoulders have become heavier,” and “I will create a new Samsung worthy of the national dignity of the Republic of Korea.”

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