Samsung Compliance Monitoring Committee to Hold Emergency Meeting Tomorrow... Discussing Expert Psychological Committee Report Contents

Discussion on Plans to Maximize Positively Evaluated Aspects and Improvement Measures for Areas Rated as Insufficient

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 external independent 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, which has emerged as a key issue in the retrial of Samsung Electronics Vice Chairman Lee Jae-yong on bribery charges related to the state affairs manipulation case, is understood to have decided to hold an extraordinary meeting on the 17th.

At this meeting, the Compliance Committee is expected to establish detailed plans for its continuous activities next year and seek improvements on the issues pointed out by the committee’s expert review members during Vice Chairman Lee’s trial.

According to business circles on the 16th, the Compliance Committee decided to hold an extraordinary meeting attended only by its members on the 17th. The committee usually holds meetings on the first Thursday of every month, receiving reports on internal transactions from compliance officers of Samsung affiliates and reviewing reports and tips submitted through separate channels.

Since the extraordinary meeting will focus on matters related to the operation of the Compliance Committee, it was decided not to hold the meeting together with compliance officers from Samsung affiliates. The meeting is expected to mainly discuss ways to actively utilize the positive points announced by the committee’s expert review panel in Vice Chairman Lee’s retrial and to improve the limitations pointed out.

Earlier, at the retrial hearing on the 7th of this month, the results of the expert review by three members regarding the Compliance Committee’s one-year activities were announced. They also submitted an 83-page final expert review report on the Compliance Committee to the court on the 14th.

Former Constitutional Court Justice Kang Il-won, recommended by the court, and former Daegu High Prosecutors’ Office Chief Prosecutor Kim Kyung-soo (currently a lawyer), recommended by Vice Chairman Lee’s side, generally gave passing marks.

In particular, former Justice Kang, who was recommended by the court and played a casting vote role between the special prosecutor and Vice Chairman Lee’s side, submitted an opinion to the court regarding the effectiveness of the compliance monitoring system under the law, stating, "As the compliance monitoring system is strengthened and the activities of the compliance monitoring organization become more active, it is clearly more difficult to commit illegal acts using internal company organizations than in the past," and added, "The launch of the Compliance Committee and its active compliance monitoring activities in organic connection with the company’s internal compliance organizations also play a role in compensating for the limitations of internal organizations."

However, limitations were pointed out, such as the lack of new types of risk definitions and proactive prevention and monitoring activities, the absence of fact-finding investigations related to the Samsung C&T merger case and the Samsung BioLogics evidence destruction case, and passive measures against indicted executives. Additionally, it was noted as a limitation that there are no regulations or enforcement measures to prevent withdrawal requests from the Compliance Committee by seven affiliates, no regulations for each possible risk type, and passive measures against indicted executives.

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