Samsung Compliance Committee, Which Released Annual Report, Pledges to Improve Samsung's Governance Activities

[Asia Economy Reporter Jeong Hyunjin] The Samsung Compliance Committee mentioned activities to improve Samsung's corporate governance as part of its future plans. Since its launch in February last year, the Samsung Compliance Committee has been responsible for compliance monitoring of Samsung Electronics and seven other major Samsung affiliates.

In the '2020 Annual Report' published on the 30th, the Samsung Compliance Committee referred to activities to improve Samsung's corporate governance as a consistent theme in its future plans. The committee stated, "(Going forward) we will review and implement follow-up measures related to the three major compliance agendas: management succession, labor, and communication with civil society," adding, "We will review the results of external consulting services promoted by the TF of Samsung affiliates and carry out improvement activities related to Samsung's corporate governance."

Accordingly, there is speculation that Samsung's corporate governance restructuring will be intensified. Last year, key affiliates such as Samsung Electronics, Samsung C&T, and Samsung Life Insurance commissioned Boston Consulting Group (BCG) for consulting related to governance restructuring, and the report is expected to be finalized soon. Since Vice Chairman Lee Jae-yong of Samsung Electronics announced in May last year that he would not pass on management succession to his children, expressing his intention to forgo 4th-generation management succession, the need for Samsung's corporate governance restructuring has been continuously raised.

As the Compliance Committee shows active enthusiasm for Samsung's current governance restructuring and signals proactive involvement in future governance restructuring, the committee's role in the governance restructuring discussions is expected to grow.

Jihyung Kim, Chairman of Samsung Compliance Monitoring Committee

In addition to governance-related issues, the Compliance Committee stated that it will strengthen communication with labor-management advisory groups of Samsung affiliates to establish lawful labor-management relations, regularly receive reports on labor negotiations at Samsung affiliates, and ensure that no legal violations occur in labor relations. Furthermore, to effectively respond in advance to new types of compliance violations that may arise in the future, the committee plans to conduct research on compliance violation risk items and evaluation indicators for the top management of affiliates, involve committee members in compliance education at affiliates, and form subcommittees as part of its activity plans.

Kim Ji-hyung, Chairman of the Samsung Compliance Committee, expressed in the report's foreword, "There is still a long way to go. Although it has been a short period of one year, it was a time to deeply feel difficulties and a time to endure with determination not to give up." He added, "The core is that the culture of compliance changes, and since it is a long journey, it must continue," emphasizing, "Until the day when 'compliance' becomes one of the values that the world takes the greatest pride in under the 'Samsung' brand, we must tirelessly continue on the path ahead."

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