Lee Chan-hee, Chairman of Samsung Compliance Committee, "Reappointment Depends on Evaluation and Trust Based on 2 Years of Performance"

"Reappointment is not my decision, inappropriate to express opinion"
"Second term positively evaluated... Checks and balances well maintained"
Rebuilding the 'control tower' deferred to next term

With about a month left in his term, Lee Chan-hee, Chairman of Samsung's Compliance Committee, commented on the possibility of his reappointment, stating, "Reappointment depends on the evaluation of the achievements demonstrated during the two years of my tenure as chairman and the matter of appointment." This is interpreted as his intention to receive an objective evaluation from the board of directors regarding the achievements he has left while leading Samsung's 2nd Compliance Committee over the past two years, and to abide by the decision thereafter. At the same time, it reflects confidence in the performance shown by the Compliance Committee during his tenure.

In a phone interview with Asia Economy on the 4th, Chairman Lee said, "Whether I am reappointed is not something I can decide. I also think it is inappropriate to express my intentions before a decision is made," expressing this view.

Lee Chan-hee, Chairman of Samsung Compliance Monitoring Committee. Photo by Kang Jin-hyung aymsdream@

Chairman Lee took office in February 2022 and led the 2nd Compliance Committee. His term expires in the first week of next month. The business community evaluates that the Compliance Committee has smoothly settled during this period. According to the '2022 Annual Report' released by the committee, the 2nd committee he led held a total of 33 meetings from February 2022 to May 2023, discussing various agenda items related to compliance management. They also held meetings with top executives including Chairman Lee Jae-yong and CEOs of affiliated companies to provide advice. Compliance education and monitoring activities targeting internal employees were also carried out. During this process, outcomes such as the promotion of a new environmental management strategy and the introduction of an external director appointment system were produced. Recognizing these achievements, on December 26 last year, Samsung's Compliance Committee received the Grand Prize in the corporate category at the 'Korea ESG Awards Ceremony' jointly hosted by the Korea ESG Society and the National Assembly ESG Forum.

Chairman Lee self-assessed, "I often visited the field to listen to voices and made multifaceted efforts to improve Samsung's compliance culture, which I have heard many positive evaluations about from those around me," adding, "I believe we also maintained a good balance of checks and balances with the company."

The question of Chairman Lee's reappointment is a matter of interest both inside and outside the business community, as it can serve as a benchmark to define the nature of the 3rd Compliance Committee. In particular, there is analysis that the role of the Compliance Committee will expand this year. If the semiconductor market, which was sluggish last year, rebounds this year, Samsung's footprint in domestic and international markets could also grow. Naturally, the Compliance Committee's role in scrutinizing the legality of Samsung's future actions and recommending corrections if problems arise could increase.

According to internal regulations, Chairman Lee can be reappointed once more after his term expires. The decision on reappointment will be made at the board meetings of seven major Samsung affiliates, likely by the end of this month.

Chairman Lee plans to hold the regular monthly Compliance Committee meeting with six members on the 23rd. This is expected to be the last meeting of this term. The 'control tower' that he has emphasized as necessary during his tenure is likely to be passed on to the next term. Chairman Lee has argued that a control tower is necessary to efficiently operate the large and diverse Samsung Group. Samsung abolished the Future Strategy Office (FSO), which served as the group's control tower, in February 2017 and has yet to establish a similar organization. Instead, it operates three task forces (TFs) by business division. Chairman Lee emphasized, "There is no agenda regarding the control tower in this meeting," adding, "The control tower is something we continuously discuss and study."

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