Samsung holds first anti-corruption committee meeting
Kim Ji-hyung, left, former Supreme Court justice and head of Samsung Group's compliance committee, speaks during a press conference in Seoul, Wednesday. Yonhap
By Kim Yoo-chul
Samsung’s self-initiated compliance committee held its first meeting after the boards of seven affiliates, including Samsung Electronics, agreed to cooperate with its requests regarding possible corruption.
Committee chief Kim Ji-hyung, who previously served as a former Supreme Court justice, presided over the meeting at its office in Samsung Life Insurance Seocho Tower, southern Seoul, Wednesday.
Those in attendance included Citizens United for Consumer Sovereignty Secretary-General Ko Gye-hyun, Civil Society Organizations Network co-head Kwon Tae-sun, Seoul National University professor Kim Woo-jin, attorney Bong Wook, and Chung-Ang University professor Shim In-sook.
Regarding the points discussed, a senior Samsung official said the committee talked over better and effective compliance processes to make sure affiliates adhere to all rules and Samsung-set regulations.
“Assuming compliance-related risk is a substantial threat to all Samsung affiliates’ financial, organizational and reputational standing, the committee members discussed the necessity of having a well-articulated compliance procedure to cut all possible risk of violating the committee set standards,” the Samsung official said.
The establishment of the corporate compliance committee and Samsung’s guarantee to let the body work “independently” are responses to order from a judge to improve the company’s overall compliance program to prevent any wrongdoings by executives. The Seoul High Court judge was pointing to the issue of Samsung chief Lee Jae-yong who allegedly bribed impeached president Park.
At the time of the establishment, senior Samsung executives including vice chairman Kim Ki-nam and co-CEO Kim Hyun-suk said all Samsung affiliates will actively improve compliance management to protect themselves from managerial risks.
Compliance refers to following relevant laws and regulations including those related to taxes and accounting. Depending on the industry, they are required to comply with large, complex sets of laws that have a substantial and significant impact on operations.
Committee chief Kim said the members agreed on the need to monitor the activities of Samsung’s board of directors and its management committees to make sure all acted are in accordance with the law.
Earlier, Kim said the committee will look “closely into” a broad range of issues that include bribery, fraud, risky external sponsorship and illegal internal transactions between Samsung units.
But it remains to be seen whether the members of the committee will directly report any wrongdoings to each of Samsung affiliates’ boards. The committee plans to receive reports from employees via its website over any alleged misconduct of Samsung employees at all levels.
In 2019, senior Samsung executives were found guilty of sabotaging a union, which eventually led to a prison term for the company’s board chief Lee Sang-hoon.