Samsung Compliance Committee and CEOs of 7 Affiliates Meeting... "We Will Become a Respected Company Through Compliance Management"

Meeting Held at Samsung Seocho Building on the 26th
Another Meeting Planned Later... Regular Meetings 'Not Yet'

All participants of the meeting between the Samsung Compliance Committee and top management, held on the 26th at Samsung Seocho Building in Samseong, Seoul, are taking a commemorative photo. (Photo by Samsung Compliance Committee)

[Asia Economy Reporter Jeong Hyunjin] On the 26th, the Samsung Compliance Committee held a meeting with the CEOs of seven affiliated companies, including Samsung Electronics, to discuss ways to strengthen compliance management by each affiliate. Following a series of "compliance management" messages from Vice Chairman Lee Jae-yong of Samsung Electronics after his legal imprisonment, the scheduled agenda was carried out as planned, and opinions were exchanged.

On the morning of the same day, the Samsung Compliance Committee invited the CEOs of seven affiliated companies to a meeting held in the executive conference room on the 6th floor of Samsung Electronics’ Seocho building in Seoul. The first CEO meeting since the committee's launch was attended by Kim Ki-nam, Vice Chairman of Samsung Electronics; Choi Yoon-ho, President of Samsung Electronics Management Support Office; Jeon Young-hyun, President of Samsung SDI; Kyung Kye-hyun, President of Samsung Electro-Mechanics; Hwang Sung-woo, President of Samsung SDS; Jeon Young-mook, President of Samsung Life Insurance; Choi Young-moo, President of Samsung Fire & Marine Insurance; and Ko Jung-seok, President of Samsung C&T Corporation, representing the seven companies.

Kim Ji-hyung, Chairman of the Compliance Committee, emphasized the importance of meetings and communication in his opening remarks. Vice Chairman Kim Ki-nam stated that through compliance management, Samsung would strive to become a company that is respected beyond being a top-tier global enterprise, according to the committee. The meeting lasted about two hours, during which the CEOs explained the current status of compliance management in their respective companies and pledged to take the lead in compliance management with a sense of responsibility.

The Compliance Committee members stressed that the will of the top management regarding compliance management is the most important factor for Samsung to take a further leap forward. A committee official explained, "The CEOs discussed strengthening compliance management by each affiliate," adding, "It was more of a meeting to ease the awkward atmosphere and to encourage mutual support for better performance rather than a meeting to resolve specific issues."

When asked whether there was any discussion related to Vice Chairman Lee Jae-yong, the official said, "It was not entirely absent, but there was talk about the need to do better regarding recent events." He also added, "Since this CEO meeting was held at the invitation of the Compliance Committee, next time, Vice Chairman Kim Ki-nam of Samsung Electronics requested to organize the meeting, and Kim Ki-nam agreed," but noted that the next meeting schedule has not been concretely decided yet, and regularization of the meetings has not been determined.

It was reported that issues such as the effectiveness of the Compliance Committee, strengthening compliance monitoring through the business support task force (TF), or adding other affiliates were not raised during the meeting between the Compliance Committee and Samsung’s top management.

Prior to the meeting, as Vice Chairman Kim Ki-nam headed to the conference room, he did not respond to reporters’ questions about whether there was any management message from Vice Chairman Lee Jae-yong or plans to strengthen compliance monitoring. Chairman Kim Ji-hyung also refrained from commenting on the court’s judgment pointing out the lack of effectiveness of the Compliance Committee, saying, "That is not something I should comment on."

Meanwhile, Vice Chairman Lee Jae-yong urged employees through the internal bulletin boards of all affiliates on the same day, saying, "Regardless of my situation, Samsung must continue on the path it must take." He expressed, "Dear Samsung family, I have caused you worry again due to my shortcomings," and added, "I am truly sorry for causing such a heavy burden." This message is the second prison message following the one delivered on the 21st through his lawyer, stating, "I will continue to support the activities of the Compliance Committee and ask that they continue to fulfill their original role."