Samsung Compliance Committee Chair: "Commercial Act Amendment Should Not Become a Political Battle of Pride"

Positive Assessment of Roh Taemoon as Successor to the Late Vice Chairman Han Jonghee

Lee Chanhee, chairman of the Samsung Compliance Committee, recently described the rejection of the Commercial Act amendment bill as a political battle of pride.

On the 22nd, before attending the regular meeting of the third-term Compliance Committee held at the Samsung Life Seocho Building in Seocho-gu, Seoul, Lee met with reporters and stated, "Improvements to any law or system should not become a stage for political power struggles or contests of political pride. It is a fundamental principle that our corporate governance, including shareholder protection, must meet global standards."

Previously, the Democratic Party of Korea had pushed for an amendment to the Commercial Act that would expand the duty of directors to include shareholders. However, after the government exercised its right to request reconsideration, the bill was put to a re-vote in the National Assembly on the 17th, but it was rejected.

Political strife between the ruling and opposition parties over the Commercial Act amendment is expected to continue. The previous day, Lee Jaemyung, a presidential primary candidate of the Democratic Party, pledged to reintroduce the amendment. The People Power Party criticized this as anti-business populism. The business community is also opposed, arguing that enhancing shareholder value and increasing corporate value (value-up) can be sufficiently achieved through the Capital Markets Act.

Lee stated, "In a time when the national economy is facing difficulties, resolving issues such as the Commercial Act amendment should be centered on the people, not political interests, and solutions should be sought in the context of overcoming the global economic crisis. More important than which law is changed is how well that law is observed and properly applied."

He also commented on the recent appointment of Roh Taemoon, head of the MX Business Division (president), as acting head following the passing of Han Jonghee, head of the DX Division (vice chairman) at Samsung Electronics. Lee said, "Having President Roh, who has long led the DX Division at Samsung Electronics, serve as acting head after the vice chairman, who played a significant role not only at Samsung but also in our broader economy, is the best choice for organizational stability. He is highly regarded and recognized for both his competence and leadership, so I believe he will successfully overcome this crisis."

Lee Chanhee, chairman of the Samsung Compliance Committee, is attending the Samsung Compliance Committee meeting held on the 22nd at the Samsung Life Seocho Building in Seocho-gu, Seoul, and responding to questions from the press. Photo by Yonhap News