'Guarantee of Independent Activities for the Compliance Oversight Committee'... Lee Jae-yong Reconfirmed Even from Prison

Attention to the First Message from the Compliance Oversight Committee After the Trial

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The first message released by Samsung Electronics Vice Chairman Lee Jae-yong on the 21st, four days after his detention, was directed toward the Samsung Compliance Committee. Instead of major management decisions such as large-scale investments or mergers and acquisitions (M&A), he mentioned ‘compliance management’ first. This clarifies that the establishment of Samsung’s Compliance Committee is not merely a one-time measure for the trial but reflects the chairman’s intention to prioritize compliance management going forward.

Since Vice Chairman Lee’s detention, the Compliance Committee has faced questions regarding its future role and position. This is because, during the retrial of the state affairs manipulation case, the court pointed out that "specific compliance monitoring measures have not been presented, and a monitoring system for illegal activities in companies other than the seven companies that signed agreements with the Compliance Committee has not been established." The Compliance Committee, chaired by former Supreme Court Justice Kim Ji-hyung, was formed and launched in February last year as an independent organization not subject to Samsung’s instructions, but it has been embroiled in debates over its effectiveness and sustainability following Lee’s detention.

However, Vice Chairman Lee reaffirmed his commitment from prison, having promised to the Compliance Committee on the 11th, a week before the trial, that he would "guarantee independence and continuous activity," clearly indicating he would not reverse his decision. Unlike in February 2017, when he was detained and did not issue a separate message, he expressed his position through his lawyers, dispelling the so-called ‘uselessness’ theory of the Compliance Committee.

Accordingly, attention is focused on the message that the Compliance Committee members, gathered together for the first time since the trial, will deliver. At the meeting, the Compliance Committee reported on existing monitoring tasks such as external sponsorship expenditures, internal transactions, and whistleblowing, and discussed major issues. Although no separate agenda was set, it is known that in-depth opinions were exchanged on measures to enhance effectiveness, including the commissioning of a project for categorizing compliance risk types announced in December last year and strengthening monitoring of the business support task force (TF). Since previous regular meetings involved marathon sessions by the members, this meeting is also expected to last for an extended period.

Samsung Electronics has not issued any official statement regarding the detention other than the compliance management position statement released through Vice Chairman Lee’s lawyers. When Lee was first detained in February 2017, presidents of 60 Samsung Group affiliates posted messages on the company’s intranet on the same day, but this time, the atmosphere is to refrain from separate remarks.

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