Lee Jae-yong Holds Four Meetings with Compliance Committee, Emphasizes Transparent Management

Samsung Compliance Committee Establishes Itself as an Internal Control Structure
First Official Meeting Held in November Last Year After Launch of Third Term
Decision on KEF Membership Fees Highlights Emphasis on Political Neutrality
Chairman Lee Chanhee: "We Will Serve as a Breakwater Against External Pressure on Samsung"

Samsung Electronics Chairman Lee Jae-yong held four meetings with the Samsung Compliance Committee (hereafter referred to as the Compliance Committee) from 2020 to last year.

According to the 2024 annual report released by the Compliance Committee on the 16th, Chairman Lee and the Compliance Committee held meetings in May 2020, October 2020, October 2021, and November 2024, for a total of four occasions.

The first of these meetings took place in May 2020, immediately after Chairman Lee issued a public apology, pledging to "create a new Samsung."

This apology was a response to the first official recommendation from the Compliance Committee. Following Chairman Lee's statement, the Compliance Committee established itself as an independent and effective external monitoring body, securing rights such as pre-review authority over affiliate board agendas and the power to investigate risks involving top management.

During additional meetings held in 2020 and 2021, Chairman Lee was reported to have exchanged views with the committee on various compliance topics, including strengthening the compliance system, ESG (environmental, social, and governance), human rights, and issues related to internal transactions.

Chairman Lee is said to have emphasized that Samsung's internal monitoring system should serve not only as a control mechanism but also as a buffer capable of absorbing external shocks that may occur in the global business environment.

The November 2024 meeting marked the first official gathering following the launch of the third term of the Compliance Committee. The committee stated, "The members and Chairman Lee freely exchanged opinions on compliance management."

Samsung Electronics Chairman Lee Jae-yong, who met with Chinese President Xi Jinping, is returning to Korea through the Business Aviation Center at Gimpo Airport in Gangseo-gu, Seoul on March 28, 2025. Photo by Kang Jinhyung

The background to Chairman Lee's repeated meetings with the committee appears to be his belief that compliance should function as a proactive system at Samsung, rather than as a reactive regulatory measure. Some interpret this as the external, independent monitoring system provided by the Compliance Committee being partially integrated into the group's overall decision-making structure.

This year marks the fifth year since Samsung began strengthening its internal control system through the Compliance Committee. Chairman Lee's multiple meetings are seen as evidence that this body has become part of a long-term governance strategy, rather than a short-term measure.

Previously, in July last year, the Compliance Committee held a meeting attended by all committee members and the CEOs of seven Samsung affiliates to discuss compliance management.

In February of this year, the committee visited business sites of Samsung affiliates in Eastern Europe, including Romania, Poland, and Hungary, to assess the current state of compliance management.

In August last year, the Compliance Committee effectively approved the payment of membership fees to the Korea Enterprises Federation (KEF) by Samsung affiliates, stating that "the decision was left to the independent judgment of each affiliate."

Regarding this, Compliance Committee Chairman Lee Chanhee wrote in the report's preface, "We deliberated extensively on whether to join the KEF," adding, "While an economic organization that can protect its members and represent their voices is necessary, it must not become a political trophy or a lobbying channel."

He continued, "As a company regarded as a national enterprise, Samsung must avoid even the slightest suspicion of collusion between business and government," and added, "The committee will also serve as a breakwater of compliance, blocking any undue external pressure that could hinder Samsung's progress, which is powered by the dual engines of fairness and innovation."

Chairman Lee also paid tribute to the late Han Jonghee, former Vice Chairman of Samsung Electronics, who passed away in March, stating, "I sincerely thank Vice Chairman Han for his steadfast commitment to compliance management and his active support of the committee's work, and I wish him eternal rest."