With Growing Uncertainty, Speed and Accountability Become Crucial
Calls for Board Return Gain Momentum in Business Circles
Samsung Compliance Committee Chairman Lee Chanhee Also Says "Return Is Necessary"
With Lee Jae-yong, Chairman of Samsung Electronics, being acquitted, calls for his return as a registered board director are once again gaining traction within the business community. Now that the long-standing judicial risks have been resolved, there are renewed arguments that a responsible management system must be established.
On the 24th, an industry insider commented, "An unregistered executive is similar to a member of the National Assembly running state affairs without attending parliamentary sessions," and added, "Given that directors are appointed by shareholders, it is desirable for them to participate in the board and fulfill their responsibilities." This perspective leads to the argument for responsible management, emphasizing that Chairman Lee should be more directly involved in management decision-making as a board member.
Since the board of directors is the company's highest decision-making body with legal and institutional responsibilities, there are calls for the owner, who plays the de facto chief executive role, to have an official position as a registered director and participate in decision-making. From the standpoint that the exercise of management authority and the fulfillment of responsibility should be aligned, some point out that the current structure, in which the chief executive remains outside the board, is undesirable in terms of transparency and accountability.
Particularly as uncertainties in the global business environment increase, there is a growing view that the speed and accountability of management decisions are more important than ever, strengthening the case for his return as a registered director. Externally, it is also analyzed that having a clear system of accountability is advantageous for building trust with global investors and partners.
Lee Chanhee, Chairman of the Samsung Compliance Committee, also reiterated the need for Chairman Lee's return as a registered director the previous day. Speaking to reporters before a regular meeting, he said, "Now that the burden of the trial has been lifted, more proactive management is necessary," and added, "There is a consensus among the Compliance Committee members regarding his return."
However, there are also cautious opinions that returning as a registered director does not necessarily guarantee management stability. Another industry official stated, "Chairman Lee has continued overseas business trips and on-site management even as an unregistered executive," expressing the view that his return is not particularly necessary.
Chairman Lee has not returned to the board since stepping down as a registered director following the 2019 state affairs manipulation case. Currently, the Samsung Electronics board includes three inside directors: Roh Taemoon, acting head of the Device eXperience (DX) division and president; Jun Younghyun, head of the Device Solutions (DS) division; and Song Jaehyuk, Chief Technology Officer (CTO) of the DS division.
Within the business community, the prevailing outlook is that Chairman Lee's return as a registered director will likely coincide with next year's regular general shareholders' meeting. Rather than convening an extraordinary general meeting, it is considered more appropriate for him to return after internal conditions, such as a rebound in company performance, have improved. There are reportedly no legal restrictions on his return according to the company's articles of incorporation.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
