[Full Text] Lee Jae-yong's Final Statement: "Creating a Company Loved by Everyone Is My 'Seung-eobu'"

"Creating a Company with the Highest Level of Transparency and Ethics"
"I Will Not Transfer Management Rights to My Children and Will Ensure There Are No Claims of Union-Free Management," Reiterated
Tears Shed While Talking About Father Lee Kun-hee, Chairman of Samsung

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Samsung Electronics Vice Chairman Lee Jae-yong stated in his final statement at the retrial of the state affairs manipulation case held on the 30th that his goal is to create a Samsung with the highest morality and transparency that everyone loves, which he described as his 'Seung-eo-bu (勝於父, better than his father)'.

In his final statement that day, Vice Chairman Lee said, "As a son who lost his father, I want to create a new Samsung that matches the national dignity and show filial piety to my deeply respected father," adding, "I will change my mindset and company culture, improve the system, and build a meticulous compliance system that can and must reject any unjust external pressure."

Following his public apology in May, Vice Chairman Lee also emphasized, "I will not pass on management rights to my children. I will ensure that the phrase 'no-union management' never arises again," and stressed, "I will take responsibility for and keep the promises I have made."

He also showed tears while mentioning his father, Samsung Chairman Lee Kun-hee.

Vice Chairman Lee Jae-yong's Final Statement at the Retrial

Honorable presiding judge and two judges, today I stand here with a repentant heart. I have vowed again and again not to repeat my mistakes as I stand here. I began working seriously at Samsung about 20 years ago, at the dawn of the golden age of semiconductors and internet communications. I was fortunate to interact with global founders like Steve Jobs and Masayoshi Son, and witnessed firsthand how professional managers grew companies hundreds or thousands of times through innovative know-how.

Each time, I wondered if we could compete with those people, and feared that if we let our guard down even for a moment, Samsung could collapse. I actually watched traditional telecommunications companies in the US and Europe, which once competed for the top spot, fall apart. Japanese companies with histories spanning over a hundred years were also struggling. Watching Chinese companies rapidly rise, I felt a sense of crisis every day. Then, in May 2014, Chairman Lee Kun-hee suddenly collapsed. Amid the confusion, there was a private meeting with President Park Geun-hye. If it were now, I would never have handled it that way. Because of that incident, the company and its employees suffered for a long time. I apologize to the public for not showing a better image. Even now, thinking back, it was a frustrating and devastating time. Honestly, it was difficult. But looking back, everything was my fault, my responsibility. I was incompetent and lacking. I deeply repent with a shameful heart.

Honorable presiding judge and two judges, this case has been a major turning point in my life. Nearly a year of imprisonment and almost four years of trial have given me an opportunity for new reflection. It gave me time to think about what I did wrong in the past. It was a precious time to consider what I should do. Above all, the Samsung Compliance Committee was established to oversee Samsung and me from the outside. The court has done more than just conduct a trial. You have raised profound questions about what role a company like Samsung should play in our society, how to develop a culture of compliance, and what kind of businessperson I, Lee Jae-yong, should become.

Before, I thought benchmarking advanced companies and focusing tirelessly on research and development to grow the company was everything, but that was not enough. I learned that in a culture of compliance, checking and rechecking and conducting legal reviews prevent future problems and ultimately help the business. I sincerely thank you for this realization. I will practice it firmly as I realized it late. Meaningful changes are happening in our company. These are not small changes. I myself feel the change through compliance management. In recent meetings, I have started asking questions I never asked before, such as "What did the compliance team say?", "Has the legal team finished reviewing this?", and "Should this go to the Compliance Committee?" I keep asking and asking.

I am also listening to external voices. Although we have taken the first step, change is just beginning. It may feel uncomfortable and seem like a detour. But there will never, ever be a return to the past. Please watch over us, honorable judge. I will not do anything illegal or that could cause misunderstandings. No matter how difficult, I will walk the right path. During the trial, concerns about the Business Support TF were raised. I heard the special prosecutor's remarks well. The Business Support TF will be subject to stricter compliance monitoring than other organizations. It will be operated transparently. No one, including myself, nor any Samsung organization will be exempt. I will review the mistakes of past Samsung top management regardless of my involvement. I will examine the circumstances of the case one by one and establish double or triple measures to prevent recurrence. I will fully support the Compliance Committee to ensure it fulfills its original role.

Until now, I hesitated to meet the Compliance Committee members too often, fearing it might diminish the committee's significance. From now on, I will meet the compliance committee members regularly and listen to their valuable criticisms of me and Samsung. I will make Samsung a company where everyone complies with the law and beyond that, a company with the highest level of transparency. I will take responsibility and push this forward. I promise. In May, I accepted the Compliance Committee's recommendation and expressed my usual stance on management succession. I will say it again. I will ensure that my children are never mentioned in connection with management succession issues. I will prevent Samsung from facing such controversies again. I will also ensure that the phrase 'no-union management' never arises again. I will create a culture where employees can communicate actively. I will keep the promises I made. I will take responsibility for keeping the promises Samsung has made to the public so far. Please trust me.

Let me share one old story. When Chairman Lee Byung-chul passed away in November 1987, I was a freshman in college. Despite the confusion, my father called the Japan branch manager that evening. He instructed to arrange meetings with top Japanese companies like Toshiba and Sony. They were Samsung's major clients and companies ahead of us at the time. In January the following year, my father took me, who was studying Japanese in Japan, to all meetings. Although he was the Samsung Group chairman, Samsung's status was not like now, so the other side sent engineers at the executive director, managing director, or department head level rather than chairman or president, but they bowed their heads to get even the latest information. That scene is still vivid in my mind. Since then, Chairman Lee Kun-hee respectfully recruited talented people we needed. That intensity became Samsung's DNA. Samsung has run forward like that. Looking back, I think I missed something important in that process. Although we became a leading company, I overlooked how significant social roles, responsibilities, and public trust are.

I failed to realize how high the expectations and standards of our people are. Although we resolved circular shareholdings, we have not yet met many people's expectations. I humbly accept criticism. Samsung will change. I will change first. I make a clear promise here. I will not pursue personal gain. I will focus on increasing the company's value and contributing to society. I will boldly correct the parts pointed out by the presiding judge as the evils of conglomerates. We will focus on what we can do well in the future. Thinking about it, I have received the most benefits in our society. I owe the people a debt I can never repay in my lifetime. I will definitely give back. I will help more partner companies grow alongside us. As Korea's leading company, I will bear several to tens of times greater responsibility.

Honorable presiding judge, two chief judges, two months ago, there was the funeral of Chairman Lee Kun-hee. A high school friend of the chairman gave the eulogy. He said he had never seen a case in the entire industry where a chairman inherited and grew a company like Chairman Lee, calling it 'Seung-eo-bu.' It meant that surpassing one's father is true filial piety. Growing the company bigger and stronger than the previous generation is the greatest filial piety. Those words strongly resonate in my mind. Winning in competition and growing the company is basic. Discovering new businesses and expanding them is also a natural duty. But the Seung-eo-bu I dream of must contain a greater meaning. I will change my mindset and company culture, improve the system, and build a meticulous compliance system that can and must reject any unjust external pressure.

I will do my best to communicate organically with small and medium enterprises, academia, and others to make our industrial ecosystem healthy. I will make Samsung employees proud of our company and create a company loved and trusted by everyone. That is also the consistent dream pursued by businessperson Lee Jae-yong. Only then can I approach my own Seung-eo-bu.

Recently, as a son who lost his father, I want to create a new Samsung that matches the national dignity and show filial piety to my deeply respected father. Lastly, I am not sure if this is an appropriate request, but I would like to say one thing. It is all my responsibility. If there is any fault to be punished, please punish me. The seniors here with me have devoted their lives to the company. Please reprimand me. I earnestly ask you not to reprimand them too much. Thank you for listening until the end.

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