After the Regular Meeting on the 21st, Statement to the Lee Jae-yong Retrial Court
"Clear Differences in Effectiveness Judgment... Achievements Over the Past Year"
[Asia Economy Reporter Jeong Hyunjin] The Samsung Compliance Committee held its first meeting on the 21st since Vice Chairman Lee Jae-yong of Samsung Electronics was sentenced to prison and detained in court in the retrial of the National Pension Service scandal. The committee stated, "Regardless of the verdict, we will continue to do our duty" and "We will prove our effectiveness through results."
The Compliance Committee made this statement in a press release after the regular meeting held at the Seocho building in Seoul on the same day. This is the first official response to the court's decision on the 18th, which sentenced Vice Chairman Lee to 2 years and 6 months in prison, stating that it was difficult to see the Compliance Committee as meeting the standards of effectiveness and that it would not be able to proactively monitor new possible future actions.
The Compliance Committee said, "We are not in a position to comment on the sentencing results. Although the committee was launched as a result of the trial, it has been operating independently regardless of the trial," but added, "We clearly have different opinions regarding the judgment on effectiveness." The committee emphasized that "since its launch, despite harsh internal and external environments, it has devoted all efforts to pioneering a desirable compliance culture at Samsung," and that it will not explain the verdict in detail but will fill in the gaps and prove its effectiveness solely through results.
The Compliance Committee confirmed its stance to continue its role regardless of the verdict. The committee explained, "The goal of the committee has always been clear beyond doubt: to deeply root compliance within Samsung and prevent any illegal activities from taking hold," adding, "Not only within Samsung but also outside, we want to ensure that no one dares to attempt anything against compliance."
It also stated, "In the past, there were so-called collusions between politics and business and various chronic illegal acts. All must be eradicated," and added, "Regarding compliance, Samsung must demonstrate that it is as clean, clear, concise, and compact as possible. We will move forward unwaveringly with that single goal in mind."
Regarding Samsung's management succession issue, the committee mentioned Vice Chairman Lee's announcement to forgo the 4th generation succession, saying, "What could be a more effective measure than this to sever ties with past illegal cases and preemptively block possible future illegal acts?" It also asked for understanding that once the succession issue is resolved, the remaining issue is the 'rational improvement of governance,' which the committee was already reviewing.
The Compliance Committee said, "There have been meaningful achievements and results through nearly a year of committee activities," but also acknowledged, "We are well aware that we are still far from boasting the committee's accomplishments. For that reason, the committee will set and tackle future tasks with a renewed determination."
Furthermore, the committee introduced its future operational plans, stating, "We will gather and implement insights from experts and various sectors of society on 'what the most desirable compliance monitoring system should be,'" and "We will focus more on building a healthy 'governance' after the 4th generation succession abandonment and strive to establish preventive measures to avoid other risks related to succession." It also mentioned plans to strengthen labor and communication issues and routine committee activities, adding, "We will continuously persuade Samsung that compliance is not merely a temporary measure or an inconvenience to be endured, but the ultimate goal that creates social value."
The Compliance Committee concluded its statement by saying, "We hope for more encouragement and support from those inside and outside Samsung who wish for Samsung to establish a desirable compliance culture and develop further as a global top-tier company shining in the world. The committee hopes that the new history of compliant Samsung will not be broken," and affirmed, "The committee's will is firm."
Earlier that morning, Samsung Electronics conveyed through Vice Chairman Lee's legal counsel that he "pledged to continue supporting the activities of the Compliance Committee and earnestly requested the chairman and members to continue fulfilling their original roles." This message, released four days after he was sentenced to 2 years and 6 months in prison and detained in court in the retrial of the National Pension Service scandal on the 18th, is interpreted as urging not to be discouraged by his trial outcome and to continue the committee's activities.
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