[Invest&Law] Experience, Expertise, and All-Rounder... Priorities Vary Widely

Corporate Compliance Oversight Chairs
Samsung Prioritizes 'Comprehensive Capability' in Appointments
Prefers Talent Overseeing Affiliates
Kakao and KT Must Be Well-Versed in Telecom Issues
Lotte and Hanwha Appoint Former Supreme Court Justices

Interest in compliance committees operated by companies and their leaders is gaining renewed attention. As companies enter the shareholder meeting season, shareholders are strongly demanding ‘compliance management’ and ‘responsible management,’ highlighting the role and function of compliance committees in preventing corporate misconduct and providing checks and balances.

Recently appointed compliance committee chairpersons are regarded as reflecting the unique characteristics of their companies. Legal professionals such as former judges, prosecutors, and lawyers have mainly been selected. In the business community, they are referred to as ‘corporate-tailored’ chairpersons.

Former Samsung Compliance Monitoring Committee Chairman Justice Kim Ji-hyung and current President of the Korean Bar Association Lee Chan-hee. Photo by Kim Hyun-min kimhyun81@

Emphasis on ‘Overall Capability’ and Consideration of ‘Specialized Fields’

Samsung is said to prioritize ‘overall management’ ability as a key qualification for its compliance committee chairperson. After Kim Ji-hyung, a Supreme Court Justice, laid the foundation for the committee’s operation during the first term (January 2020 to February 2022), the second term (March 2022 to January 2024) was entrusted to Lee Chan-hee, former president of the Korean Bar Association. Lee previously served as head of the Seoul Bar Association (2017?2018) and the Korean Bar Association (2019?2021). During his tenure, as the final decision-maker of the association, he gathered and handled opinions from members and the board on sensitive issues. Additionally, as president of the Korean Bar Association, he recommended suitable candidates for key legal positions such as Prosecutor General and head of the Corruption Investigation Office for High-ranking Officials, and as a lawyer, he handled various lawsuits demonstrating strong legal judgment.

Samsung judged that Lee was suitable as compliance committee chairperson because he needed to understand the circumstances of a group with many affiliates and the sensitive legal issues faced by those affiliates. Kakao and KT, when selecting their compliance committee chairpersons, reportedly placed great emphasis on ‘expertise.’ The appointment of former Supreme Court Justice Kim So-young as the inaugural chairperson of Kakao’s Compliance and Trust Committee was largely due to her professional capabilities in competition law and capital markets law demonstrated while working as a lawyer at Kim & Chang law firm from 2022 to 2023. At that time, Kakao needed to resolve monopoly issues in various markets such as taxis. Her experience as chairperson of the Korea Press Ethics Commission was also considered.

Kim Beom-su, Chairman of Kakao's Management Innovation Committee, and Kim So-young, Chairwoman of Kakao's Compliance and Trust Committee. Photo by Kakao

Kim Hu-gon, who became KT’s Compliance Committee chairperson earlier this month, is an expert in the telecommunications field. He served as a legal advisor dispatched to the Korea Communications Commission during the Lee Myung-bak administration and under Chairman Choi Si-jung, and also worked as chairperson of the Ministry of Science and ICT’s Data Dispute Mediation Committee. During his time at the prosecution, he served as head of the Information and Communications Division at the Supreme Prosecutors’ Office. Kim was also mentioned as a candidate for the next chairman of the Korea Communications Commission in March last year.

‘Supreme Court Justice’ Chairpersons at Lotte and Hanwha

Lotte and Hanwha Group have also long established compliance committees to strengthen compliance management. They entrusted leadership to former Supreme Court Justices with extensive trial experience. Lotte first organized this body in April 2017, and former Supreme Court Justice Lee In-bok took office in June 2021 and continues to lead the committee.

Lee also served as chairman of the National Election Commission from 2013 to 2016. Since April 2020, he has been working as a lawyer at the law firm Hwawoo. Hanwha Group established its compliance committee in July 2018 and has been operating it since. Former Supreme Court Justice Lee Hong-hoon was the inaugural chairperson, but after his passing on July 11, 2021, former SungKongHoe University President Lee Jung-gu is currently acting as the chairperson.

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