"Hangyeonghyeop Must Reflect Itself
Review Whether It Can End Collusion Between Politics and Business Before Re-discussion"
Meeting with CEOs of 7 Samsung Companies
Focused Discussion on Labor-Management Issues
The Samsung Compliance Committee (Compliance Committee) decided on the 22nd not to reach a conclusion regarding Samsung's payment of membership fees to the Korea Economic Association (Hankyunghyup) and to discuss the matter again later.
Lee Chan-hee, chairman of the Samsung Compliance Committee, who has just concluded the regular meeting of the committee, is attending the Samsung Compliance Committee and representatives from seven affiliated companies meeting held on the morning of the 22nd at Samsung Electronics Seocho Building in Seoul. [Image source=Yonhap News]
Lee Chan-hee, chairman of the Compliance Committee, told reporters after the regular meeting of the Compliance Committee held at Samsung Electronics Seocho Building in Seocho-gu, Seoul, in the morning, "There was a fundamental question raised by the committee members about whether Hankyunghyup has undergone personnel reform that can truly break the chain of collusion between politics and business," adding, "We could not reach a conclusion regarding the payment of membership fees."
Earlier, on April 4, Hankyunghyup requested membership fee payments totaling 3.5 billion KRW from the four major groups (Samsung, SK, Hyundai Motor, and LG), and it is reported that each group, including Samsung, is currently considering the timing of the payment.
Samsung must obtain prior approval from the Compliance Committee before paying the membership fees, according to the "Recommendation for Joining Hankyunghyup" announced by the Compliance Committee in August last year. At that time, the Compliance Committee also recommended that Hankyunghyup should immediately withdraw if it engages in collusion between politics and business or misuses membership fees or donations for purposes other than the original intent, in addition to requiring prior approval for fee payments.
Chairman Lee pointed out, "The reason for changing from the Federation of Korean Industries (FKI) to Hankyunghyup was to break the chain of collusion between politics and business, but there is a fundamental question about whether the current personnel and structural composition have truly broken that chain."
He added, "That is an issue that Hankyunghyup itself needs to review," and "We will review whether it is possible to break the chain of collusion between politics and business systemically and discuss again regarding the payment of Hankyunghyup membership fees."
Hankyunghyup changed its name from FKI in May last year and presented an innovation plan centered on establishing an ethical charter. At that time, Ryu Jin, chairman of Hankyunghyup, stated, "We will thoroughly clear the dark past and break the wrong links," and "We will practice ethical management and ensure that a transparent corporate culture takes root throughout the economic community."
Later, in August last year, Chairman Lee Chan-hee mentioned at a special meeting of the Compliance Committee discussing Samsung's return to Hankyunghyup, "(The issue is) whether Hankyunghyup can definitely break the chain of collusion between politics and business."
While Samsung's Compliance Committee has not reached a conclusion on the payment of Hankyunghyup membership fees, attention is also focused on the decisions of other groups such as SK, Hyundai Motor, and LG.
Meanwhile, Compliance Committee members, including Chairman Lee Chan-hee, held a meeting in the morning at Samsung Electronics Seocho Building with CEOs of major affiliates including Samsung Electronics (Samsung C&T, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Life Insurance, Samsung Fire & Marine Insurance).
The meeting was attended by Han Jong-hee, Vice Chairman of Samsung Electronics; Oh Se-cheol, President of Samsung C&T; Choi Yoon-ho, President of Samsung SDI; Jang Deok-hyun, President of Samsung Electro-Mechanics; Hwang Sung-woo, President of Samsung SDS; Hong Won-hak, President of Samsung Life Insurance; and Lee Moon-hwa, President of Samsung Fire & Marine Insurance.
At this meeting, it is believed that the results of the Compliance Committee meeting regarding Hankyunghyup membership fee payments were shared and opinions on labor-management relations were exchanged.
Before the meeting, Chairman Lee told reporters, "Labor-management issues are a mountain that Samsung must overcome," and "We will review various compliance management issues of Samsung, including labor-management issues, at the meeting."
Samsung Electronics' labor and management have not been able to narrow their differences in wage negotiations that have continued since early this year, and the National Samsung Electronics Labor Union (Jeonsamno) has launched its first strike. This is the first strike since Samsung Electronics was founded. Both labor and management plan to resume wage negotiations on the 23rd.
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