Samsung Compliance Committee Expert Review Panel of 3 Members Completed by Lee Jae-yong Trial Court (Comprehensive)

Court confirms former Constitutional Court Justice Kang Il-won, former Daegu High Prosecutor Kim Kyung-soo, and accountant Hong Soon-tak
Lee Jae-yong appears at retrial after 10 months... silent in response to reporters' questions
Special prosecutors and court clash again over selection and procedures of expert psychological committee

Samsung Electronics Vice Chairman Lee Jae-yong is entering the Seoul High Court in Seocho-dong on the 9th, where the retrial for the 'state affairs manipulation' case is being held. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Ki-min Lee] The retrial panel for Samsung Electronics Vice Chairman Lee Jae-yong has appointed former Constitutional Court Justice Kang Il-won, former Daegu High Prosecutors' Office Chief Prosecutor Kim Kyung-soo (currently a lawyer), and accountant Hong Soon-tak (Executive Committee Member of the People's Solidarity for Participatory Democracy Economic and Financial Center) as expert advisors to evaluate the effectiveness and sustainability of the Samsung Compliance Committee.

These expert advisors will review the activities of the Compliance Committee, which serve as mitigating factors for Vice Chairman Lee's sentencing, and are scheduled to deliver their evaluation on the 30th of this month, drawing significant attention.

The Seoul High Court Criminal Division 1 (Presiding Judge Jung Joon-young) held the fifth hearing on bribery charges related to the state affairs manipulation case against Vice Chairman Lee from 2:05 PM to 5 PM on the 9th.

Vice Chairman Lee arrived at the Seoul Court Complex in Seocho-gu, Seoul, where the Seoul High Court is located, around 1:34 PM wearing a gray suit. Reporters asked questions such as "How do you feel about appearing in court after 10 months?", "Please evaluate the Samsung Compliance Committee," and "What is your position on the new trial regarding the Samsung Biologics accounting fraud case?" but Vice Chairman Lee remained silent and proceeded to the courtroom. On his way home, he was also asked about his stance on the court's selection of expert advisors, but he did not respond and got into his car.

During the hearing, the court finalized the selection of expert advisors to assess the effectiveness of the Samsung Compliance Committee and set the date for their testimony. Previously, the court had appointed former Justice Kang, who presided over former President Park Geun-hye's impeachment trial. Vice Chairman Lee's side recommended former Chief Prosecutor Kim, currently with the law firm Yulchon, while the special prosecution recommended accountant Hong.

Both sides opposed the neutrality of the expert advisors recommended by the other party, but the court decided to appoint accountant Hong, stating, "He has extensive experience analyzing and providing opinions on corporate crimes as an accountant," and "He has a keen interest in internal control systems to prevent corporate crimes such as bribery and embezzlement." Regarding former Chief Prosecutor Kim, the court explained, "He served as head of the Central Investigation Department of the Supreme Prosecutors' Office and is currently a partner lawyer in the corporate criminal team at a law firm," and "He has experience both prosecuting and defending in corporate crime investigations," deeming him suitable.

However, the special prosecution strongly protested the court's selection of expert advisors on this day. They argued, "Lawyer Kim has been involved as counsel for Deloitte Anjin Accounting Firm, which is implicated in the Samsung Biologics accounting fraud case, thus having a direct conflict of interest with the defendants."

In response, Vice Chairman Lee's side countered, "They are publicly disclosing the accounting firm's alleged offenses," and the court pointed out, "This is unrelated to the charges in the current case." As the trial became heated, the court decided to take a five-minute recess.

Deputy Chief Prosecutor Lee Bok-hyun of the special prosecution confronted the court, saying, "Why are you interrupting? Please do not interrupt," to which the court responded, "It is frustrating when unrelated remarks are made," raising their voice. Eventually, Deputy Chief Prosecutor Lee left the courtroom during the trial.

The court explained, "The compliance monitoring system cannot be considered the sole or a significant mitigating factor," adding, "Whether a corporate culture can be established will be an important point of inspection." If document review is insufficient during the expert advisors' assessment, on-site inspections and interviews will also be conducted.

The three expert advisors, including former Justice Kang, will elect a chairperson by the 10th of this month and discuss future schedules. They will prepare a review report on the general opinions regarding the 'compliance monitoring system' proposed by the court and the effectiveness of the compliance system presented by Vice Chairman Lee's side. The court plans to hear the expert advisors' statements on the 30th of this month.

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