Samsung Compliance Committee Increasing Its Presence... To Continue Even After Lee Jae-yong's Trial Ends

[Asia Economy Reporter Ki-min Lee] The Samsung Compliance Committee, which has become a key issue in the retrial of Samsung Electronics Vice Chairman Lee Jae-yong on charges including bribery related to the state affairs manipulation scandal, is steadily expanding its presence within Samsung through active and broad activities. Samsung and the Compliance Committee plan to maintain their current activities even after Lee’s retrial, aiming to elevate Samsung to a global standard company in compliance management.

According to business and legal circles on the 9th, Samsung intends to continuously maintain and support the Compliance Committee, which officially launched in February through an agreement with seven affiliates including Samsung Electronics, even after Lee’s trial. This contrasts with earlier skeptical views that the committee would "constantly be cautious of Samsung throughout its activities" or "become ineffective or disappear once Lee’s trial ends."

Since its launch, the Compliance Committee has strengthened its independence and authority, producing visible results. The committee’s greatest achievement is considered to be Lee Jae-yong’s public apology in May. In March, the committee recommended that Lee directly address chronic issues such as labor relations and succession problems, which had been persistent criticisms of Samsung. In response, Lee officially declared for the first time in his public apology that the no-union management policy would be abolished. Subsequently, collective bargaining has been conducted at Samsung Display, Samsung SDI, and others, and Samsung Fire & Marine Insurance signed a collective agreement in August, rapidly transforming into a "unionized Samsung."

Lee’s emphasis on "talent and technology-centered management," along with his statement that he would not pass on succession to his children, is also gaining momentum. Despite the spread of COVID-19, Lee has been accelerating on-site management through overseas business trips to China, the Netherlands, Vietnam, and domestic sites. Samsung is also expanding talent development and technology sharing by conducting corporate social responsibility (CSR) programs, open-source conferences, AI forums, and various events both online and offline.

Additionally, shortly after its official launch on February 13, the Compliance Committee secured an apology and urged prevention of recurrence regarding Samsung’s unauthorized access to employee and civic group sponsorship records. The committee also exerted considerable influence in the May settlement between Samsung and Kim Yong-hee, a dismissed worker who staged a high-altitude protest.

The Compliance Committee is also making efforts to build momentum to continue its activities. On the 8th of last month, Chairman Kim Ji-hyung met with Lee Jae-yong and confirmed the commitment to compliance management. Lee reiterated, "I will guarantee the activities of the Compliance Committee." It is reported that Lee and the committee agreed to meet again next month to discuss Samsung’s compliance management. Furthermore, on the 25th of last month, following the passing of Samsung Chairman Lee Kun-hee, the committee reaffirmed its determination not to stop driving compliance at Samsung, stating that "establishing a culture of compliance is a task left by Chairman Lee." After Samsung’s personnel reshuffle, the committee plans to meet with CEOs of Samsung’s seven affiliates in January next year to emphasize compliance management.

Meanwhile, the Seoul High Court Criminal Division 1 (Presiding Judge Jung Jun-young), which resumed Lee’s retrial, will hold a formal trial session at 2:05 p.m. on the same day. Since the court ordered expert evaluations on "improvement plans for the Samsung Compliance Committee" during the preparatory hearing on the 26th of last month, the key issue is expected to be the selection of expert examiners to assess the committee’s effectiveness and sustainability, as well as discussions on the trial procedure.