Response to “Implementation of public announcements such as the abandonment of the 4-year succession and the protection of human labor rights”
President Lee Chan-hee “Personally I think we need a group control tower”
Samsung Electronics Vice President Lee Jae-yong visited the Samsung Compliance Committee after 1 year and 9 months.
The group is assessed to have reaffirmed its commitment to law-abiding management.
He is known to have had a wide range of views with members on improving corporate governance and restoring the group’s control tower in an atmosphere where Vice President Lee’s inauguration as president was imminent.
According to the Samsung Compliance Committee on the 12th, Vice President Lee had a meeting with members before the regular Compliance Committee meeting held at Samsung Life Insurance Seocho Tower in the afternoon.
The interview lasted about an hour with all members, including President Lee Chan-hee, present.
This is the first meeting between Vice President Lee and the Compliance Committee since the establishment of the Compliance Committee in February of this year.
The Compliance Committee explained that it asked Vice President Lee to make efforts to prevent the risk of compliance violations and to pay attention to establishing a culture of compliance within the company.
Vice President Lee said, “We will faithfully implement the content of the public announcement in 2020 and actively participate in fair and transparent compliance management and environmental, social and governance (ESG) management, which are the direction of the committee’s activities. . We will also strengthen communication, “the Compliance Committee said.
Earlier, in a public announcement in 2020, Vice President Lee had expressed his intention to “give up management succession to the 4th generation” by saying he would not sell the business to his children.
Vice President Lee also stressed, “We will work together as much as possible so that the Compliance Committee can continue to operate independently.”
President Lee Chan-hee, who met with reporters after the Compliance Committee meeting, said, “There has been extensive discussion on the role and direction of the Compliance Committee.
We haven’t discussed any details, “he said.
He continued: “Since it was our first meeting, we talked about a wide range of directions and (Vice President Lee) listened to the members a lot,” he said.
The compliance committee was initiated in February 2020 after the Supreme Court of Vice President Lee’s National Nongdan case ordered the establishment of Samsung’s internal compliance monitoring system.
Externally, it is an independent organization that does not receive instructions from Samsung.
The 2nd Compliance Committee has selected “Environmental, Social and Governance Management (ESG) through Improved Governance” as one of the three main tasks to pursue and is working to improve the governance structure of the Samsung Group.
Although the details of the interview were not disclosed, it appears that the discussion on the plan to restore the control tower and improve the governance of the group also took place during the interview.
In 2017 Samsung abolished the Future Strategy Office, which was the control tower of the group, in 2017, and supported the current business (Samsung Electronics), strengthening financial competitiveness (Samsung Life Insurance), EPC (design, procurement, construction) improving competitiveness (Samsung C&T), etc. There are three task forces (TFs) in operation for each division.
Amid the recent deterioration of the semiconductor industry, the main industry, and stiff competition for future food products such as biotechnology, opinions have been raised both inside and outside the group that a tower of control to oversee the group in order to make large-scale investment decisions such as large-scale mergers and acquisitions and establish medium and long-term strategies
However, the role of the Supervisory Body in monitoring the situation has become more important as it can be highlighted that the past, which had been criticized for being a link between politics and business, is being revived as an organization under the direct control of the head of State.
In addition to the abolition of the unfinished office in 2017, concerns about the reversal of the franchisee self-management system envisaged by the management reform plan should also be resolved.
Asked by reporters whether restoration of the group’s control tower was necessary, President Lee Chan-hee said, “I think it is necessary in my personal beliefs,” but “personal opinion and the opinion of the committee are completely separate “.
“The president cannot control the committee,” he said.
(Related to the control tower) has not yet been discussed and no conclusions have been reached, “he added.
Meetings with the Compliance Committee should become regular in the future.
Earlier, in a meeting with Vice President Lee in January last year, he had decided to hold regular meetings with the Compliance Committee, stating that he would take full responsibility for the Compliance Committee’s effectiveness and sustainability.
President Lee explained: “We will be making (interviews) regular in the future” and “However, it’s not something like this every few months, but because we haven’t seen each other often due to the corona virus in the first phase, we can meet more often and meet. whenever we need it “.
On the other hand, there is also an interpretation that Vice President Lee met with the compliance committee for the first time since the special liberation day amnesty and served as a preliminary greeting before assuming the post of president.
At the end of the interview, it is said that the preparatory work for the inauguration of the president has been practically completed.
After the special liberation day amnesty, Vice President Lee expanded his step by taking the lead in management by visiting one after another the domestic and overseas commercial sites of major affiliates such as Samsung Electronics.
The day before, for the first time in 7 years, I visited Incheon’s Songdo Bio Campus and took a look at Samsung Biologics’ fourth factory.
Vice President Lee joined Samsung Electronics in 1991 with the rank of general manager and holds the title for 10 years after being promoted to vice president in December 2012 at the age of 44.
Among the leaders of the big four groups, Vice President Lee is the only one who did not have the title of president.
Regarding the inauguration period, the second anniversary of the late president Lee Kun-hee is mentioned, the 25th anniversary of the founding of Samsung Electronics on November 1st, and December, the regular staff season for presidents.
There is also talk of a plan to appoint the title of president as he will become a registered executive after the ordinary general meeting of shareholders in March next year.
However, there is also an analysis that there is no reason to rush into office as the Fair Trade Commission in 2018 changed the head of the Samsung Group (identical person) to Vice President Lee for the first time in 30 years. .
/ yunhap news
