[Report] Black Suit, Black Mask... Samsung Electronics' Extraordinary General Meeting Started with a Moment of Silence

Temporary General Meeting Held After 6 Years
Appointment of Outside Directors Yoo Myung-hee and Heo Eun-nyeong
Lee Jae-yong's Appointment as Executive Director Expected in March Next Year

The 54th Extraordinary General Meeting of Shareholders of Samsung Electronics was held on the 3rd at the Samsung Electronics Human Resources Development Center located in Yongin-si, Gyeonggi-do.
[Photo by Han Yeju]

[Yongin=Asia Economy Reporter Han Yeju] The extraordinary general meeting of shareholders of Samsung Electronics, held for the first time since Chairman Lee Jae-yong's inauguration, was conducted solemnly on the 3rd at the Samsung Electronics Human Resources Development Center located in Yongin, Gyeonggi Province, in mourning for the victims of the Itaewon tragedy. Although there was speculation that Chairman Lee Jae-yong might return as a registered director, Samsung Electronics concluded the meeting within 30 minutes by approving only the existing agenda of appointing two outside directors.

On the morning of the meeting, the 54th extraordinary general meeting of Samsung Electronics began with a moment of silence to commemorate the 156 lives lost in the Itaewon tragedy. About 50 shareholders attending the meeting and Samsung Electronics executives and employees, dressed in dark clothing and wearing black masks, maintained a solemn atmosphere.

At the board meeting of Samsung Electronics that day, outside directors Kim Han-jo, Chairman of Hana Financial Public Welfare Foundation; Kim Jong-hoon, Chairman of Kisswe Mobile; Kim Joon-sung, former Managing Director of the Singapore Investment Corporation; and inside directors including Han Jong-hee, Vice Chairman of the DX Division; Kyung Kye-hyun, President; Noh Tae-moon, President of the MX Business Division; Park Hak-gyu, President of the Management Support Office; and Lee Jung-bae, President of the Memory Business Division, were present.

Samsung Electronics held an extraordinary general meeting for the first time in six years since 2016. Vice Chairman Han Jong-hee said in his greeting, "The extraordinary general meeting was held to appoint two new outside directors following the resignation and retirement of two outside directors in April and May," adding, "The company will continue to strengthen the independence and expertise of the board of directors and do its best to maximize company development and shareholder interests."

Under current commercial law, listed companies with total assets exceeding 2 trillion won are required to appoint a majority of outside directors (at least three). Earlier this year, outside director Han Hwa-jin resigned after being nominated as Minister of Environment, and outside director Bang Byung-guk suddenly passed away, causing the proportion of outside directors to fall below half.

On the 3rd, at Samsung Electronics Human Resources Development Center located in Yongin, Gyeonggi-do, Vice Chairman Han Jong-hee is delivering a greeting at Samsung Electronics' 54th Extraordinary General Meeting of Shareholders.
[Photo by Han Ye-ju]

The shareholders' meeting was also accessible online. This was a consideration for shareholders who found it difficult to attend in person due to concerns about COVID-19 infection. Shareholders who wished to participate were pre-registered and provided with a separate broadcast URL. It is known that a significant number of shareholders attended online.

As a result of this meeting, former Ministry of Trade, Industry and Energy trade negotiation chief Yoo Myung-hee, an expert in economic and trade affairs, and Professor Heo Eun-nyung of Seoul National University College of Engineering, an energy expert, joined the board as outside directors. Samsung Electronics' recruitment of experts in trade and energy as outside directors is interpreted as a proactive response to recent global supply chain issues and ESG challenges. In response to shareholders' questions about Professor Heo Eun-nyung, Vice Chairman Han said, "(Professor Heo) is a world-renowned scholar in the energy field," adding, "In a situation where ESG has become even more important, he is expected to contribute to strengthening the company's environmental management." This also appears to be an effort to fill outside director vacancies ahead of the regular shareholders' meeting in March next year to reinforce board-centered management. With the approval of this agenda, Samsung Electronics' board now consists of six outside directors and five inside directors.

Since this extraordinary general meeting was primarily to confirm outside directors, there was no mention of Chairman Lee Jae-yong's return as a registered director. Currently, Chairman Lee is the only chairman among the four major conglomerates not registered as a director. He was appointed as an inside director at the extraordinary general meeting in October 2016, but his term expired in October 2019. It is expected that Chairman Lee's appointment as a registered executive will take place at the regular shareholders' meeting in March next year.

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