Lee Chanhee, Samsung Compliance Committee Chairman: "Yellow Envelope Act Requires Time for Companies and Employees to Adapt"

Samsung Compliance Committee Holds Regular Meeting on the 26th Afternoon
Chairman Lee Shares Personal Views with Reporters Before Meeting
"Companies Now Facing a New Environment"
On Lee Jae-yong's Trip to the US: "Necessary for Corporate Growth"
Discussion on Samsung Life's Affiliate Stock Accounting Methods

Lee Chanhee, chairman of the Samsung Compliance Committee, expressed his view on the so-called "Yellow Envelope Act" (Partial Amendment to the Trade Union and Labor Relations Adjustment Act), which has passed the National Assembly plenary session and is causing concern in the business community, stating that "time is needed for an accurate assessment."

Lee Chanhee, chairman of the Samsung Compliance Committee, arrives at the Samsung Life Seocho Tower in Seocho-gu on the afternoon of the 26th, where the regular Compliance Committee meeting is held, responding to questions from the press. Photo by Kim Hyungmin

Chairman Lee made these remarks on the 26th while speaking with reporters before attending the regular meeting of the Samsung Compliance Committee held at Samsung Life Seocho Tower in Seocho-gu, Seoul.

Chairman Lee explained that the Compliance Committee has not reviewed the Yellow Envelope Act at the committee level, but based on his own perspective as a legal professional, he said, "It now appears that companies are facing a new environment." However, he added, "I do not know how this new environment will be implemented, and at this point, I believe both companies and employees need time to adapt to this new environment."

He further stated, "Especially from the perspective of employees, they have so far been considered the weaker party in their relationship with companies, so I will be paying close attention to how this law is enforced."

Regarding Samsung Electronics Chairman Lee Jae-yong joining the economic delegation as the Korean government heads to Washington, D.C. for the Korea-U.S. summit, Chairman Lee said, "The main reason for the chairman's overseas trips and visits to domestic business sites is the development of the company," adding, "I believe what matters most is that he engages in activities necessary for the company's growth." On Choi Ji-sung, former head of Samsung Group's Future Strategy Office, who was granted a special pardon on Liberation Day, he commented, "It is being evaluated as Samsung being freed from the long-standing shackles of legal risk," and added, "I believe this marks a new starting point for Samsung to do its utmost in compliance management going forward."

Meanwhile, the Compliance Committee is also scheduled to discuss the accounting method for Samsung Life's affiliate stock holdings at the meeting. Recently, there have been issues raised by the Korea Accounting Standards Board and some politicians regarding the accounting treatment of Samsung Life's stake in Samsung Fire & Marine Insurance.

Chairman Lee explained, "We have thoroughly reviewed the matter, not only through regular meetings but also through ad hoc meetings and multiple reports from the company," and added, "Just in case there is anything we may have missed, we plan to briefly discuss it at today's meeting as well."