Lee Jae-yong to Attend State Manipulation Trial Tomorrow... Results of Compliance Committee Expert Review to be Released

80th Appearance in State Manipulation Trial Including 1st and 2nd Instances
Submission of Dozens of Pages Report by Expert Panel
Despite Concerns Over Business Disruption Due to 'Prolonged Trial'...Decision for 'Stable Yet Renewed' Regular Executive Appointments

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Samsung Electronics Vice Chairman Lee Jae-yong will attend his 80th hearing related to the state affairs manipulation trial on the 7th. Attention is focused on this trial as the expert evaluation results of the Samsung Compliance Committee, which will be reflected in Lee's sentencing, are scheduled to be announced.

According to the legal and business circles on the 6th, the Seoul High Court Criminal Division 1 (Chief Judge Jung Jun-young) will announce the expert evaluation results on the Compliance Committee during the bribery trial related to the state affairs manipulation case at 2 p.m. on the 7th. Coincidentally, this day marks Lee's 80th court appearance, including the first and second trials and the retrial after remand.

The court plans to hear statements from expert evaluators who assessed the effectiveness and sustainability of the Compliance Committee in this trial. Previously, the court, the special prosecution, and Lee's defense team each appointed former Constitutional Court Justice Kang Il-won, accountant Hong Soon-tak, and former Daegu High Prosecutor Kim Kyung-soo as expert evaluators last month.

The expert evaluators have reviewed activity materials provided by the Compliance Committee and conducted interviews with Chairman Kim Ji-hyung and others. On the 3rd, they also submitted a detailed expert evaluation report spanning several dozen pages to the court. The report submitted under former Justice Kang's name is known to include expert opinions from former Prosecutor Kim and accountant Hong as well.

Earlier, when the retrial after remand began in October last year, the court ordered Lee to establish a compliance system within Samsung as a factor to be reflected in sentencing. In response, Samsung launched the Compliance Committee chaired by former Supreme Court Justice Kim Ji-hyung in January this year.

The Compliance Committee has recommended apologies regarding issues such as unauthorized access to employee support accounts, succession, labor, and communication with civil society. Samsung and Lee accepted these recommendations and issued official apologies.

Additionally, the committee played a certain role in facilitating an agreement between dismissed laborer Kim Yong-hee, who was on a high-altitude protest, and Samsung. Moreover, over the past year, it has monitored internal transactions exceeding 5 billion won among Samsung affiliates and conducted compliance education for employees.

Initially, some in the business community expressed concerns that Lee's prolonged trial might disrupt management and that Samsung's personnel appointments would be postponed until after Lee's retrial after remand.

However, recently, to stably overcome the crisis caused by the resurgence of the novel coronavirus infection (COVID-19) and to revitalize the company, Samsung has completed personnel appointments for presidents and executives. However, Lee did not assume the chairman position, which has been vacant since the passing of his father, Chairman Lee Kun-hee.

In particular, Samsung Electronics, the eldest among Samsung affiliates, recorded its highest-ever sales in the third quarter this year despite the COVID-19 crisis, and the number of vice president and executive promotions reached 214, marking the largest scale in three years.

Furthermore, the number of executive promotions in the software (SW) division, which handles artificial intelligence (AI) and other areas, doubled to 21 compared to previous years, accelerating preparations for future core growth engines.

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