Today, Vice Chairman Lee Jae-yong's Retrial, Expected to Emphasize Commitment to Compliance Management

Samsung Electronics Vice Chairman Lee Jae-yong is getting out of a car to attend the retrial hearing of the state affairs manipulation case held at the Seoul High Court in Seocho-gu, Seoul, on the afternoon of December 6 last year.
[Image source=Yonhap News]

[Asia Economy reporters Changhwan Lee and Gimin Lee] The 4th hearing of the retrial of Samsung Electronics Vice Chairman Lee Jae-yong, who is on trial in connection with the Park Geun-hye administration's state affairs manipulation scandal, will be held on the afternoon of the 17th at the Seoul High Court.

According to legal circles, on this day, Vice Chairman Lee and his legal team are expected to express Samsung's commitment to compliance management. It is reported that Lee's side submitted explanatory and clarifying materials related to Samsung's Compliance Committee to the court the day before. If the court requests further explanation, the legal team is also said to have prepared specific materials to explain this.

On the 9th, Samsung launched the Samsung Group Compliance Committee chaired by former Supreme Court Justice Kim Ji-hyung. The Compliance Committee is an independent body of Samsung that plans to focus on monitoring and correcting or sanctioning legal violation risks in the deliberations and resolutions of the boards of directors and management committees of affiliates. Former Justice Kim chairs the committee, with members from the legal community, civil society, and academia serving as external members.

The Compliance Committee was established in response to the court's request. Previously, the court asked at a hearing, "Please provide an answer before the next hearing on whether you would offer bribes if the same demands were made by political powers in the future, and what companies should do to refuse such demands."

Regarding this, former Justice Kim said at a meeting on the 9th, "I thought it was necessary to have a firm commitment from the group head on whether there is a genuine will for compliance management and whether the Compliance Committee can be operated as a fully autonomous and independent body," adding, "I met Vice Chairman Lee directly and obtained his promise."

The Compliance Committee monitors compliance management of major Samsung Group affiliates including Samsung Electronics, Samsung C&T, Samsung Life Insurance, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, and Samsung Fire & Marine Insurance.

Accordingly, a major point of interest in this hearing is how much the court will recognize Vice Chairman Lee's commitment to compliance management as demonstrated by the establishment of the Compliance Committee.

Also attracting attention is whether Son Kyung-sik, chairman of CJ and a witness requested by Lee's side at the previous hearing, will appear. Lee's side had requested Son as a witness to prove that the equestrian support was a 'passive bribery' forced upon them. However, Son reportedly recently submitted a letter of non-attendance to the court, stating that he is unable to attend due to a business trip to Japan.