Rising Compliance Management... Major Law Firms Keep Pace

[Asia Economy Reporter Seongpil Jo] The law firm Jipyung recently developed a system that allows members to report 'illegal activities within companies' externally online. Jang Gi-seok, a lawyer at Jipyung, explained the background of the development, saying, "There is a growing trend to strengthen compliance procedures within companies, and we thought that reporting online would better guarantee independence and fairness."

Major domestic law firms are expanding related services in line with the business trend of strengthening compliance work. This movement also reflects the position of companies that face an increased possibility of being involved in criminal lawsuits amid the government's emphasis on fair trade.

Most large domestic conglomerates already operate compliance committees. Recently, companies like Samsung and Lotte have firmly established compliance monitoring organizations following the political scandal. However, when looking inside, there is an evaluation that these systems do not function properly, especially regarding matters related to the controlling family. This year alone, the controlling families of Samsung, Booyoung, Hanjin, and Hyosung have been involved in criminal trials on charges such as embezzlement. This is an example showing the limitations of compliance systems within companies.

In response, the law firm Kwangjang is utilizing 'digital forensic personnel' who regularly check the appropriateness and compliance of corporate compliance systems. When suspected violations of compliance management occur among executives and employees, including the controlling family, the investigation is entrusted to digital forensic personnel. Forensics refers to recovering deleted data or finding clues of suspected misconduct from large amounts of data. Kwangjang performs analysis tasks related to compliance management through forensic work, such as analyzing trade secret leaks, investigating accounting fraud, and embezzlement of funds.

Kim & Chang and Bae, Kim & Lee, the largest domestic law firms, also possess digital forensic capabilities. Kim & Chang has subdivided teams by industry and issue to strengthen advisory services related to compliance management for companies.

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