Samsung pledges to beef up compliance across group

Shim Woo-hyun

SEOUL (The Korea Herald/ANN) – Korean tech giant plans to strengthen internal structure. Samsung Electronics yesterday vowed to strengthen its compliance to related laws and regulations by forming a committee that will supervise its internal structure across subsidiaries.

Former Supreme Court Justice Kim Ji-hyung – who previously chaired a committee to settle a long-standing dispute over work environment and employee issues at the firm – will lead the in-house committee.

While Samsung has been operating an internal compliance system, it decided to reinforce its functions following a recommendation by the Seoul High Court.

During the bribery trial of de facto leader and heir apparent Lee Jae-yong in October last year, the court called for stricter compliance measures involving top executives.

Lee was sentenced to five years in prison in 2017 for giving bribes to a longtime friend of former President Park Geun-hye. He was released after about a year following a suspension of his sentence. The Supreme Court has since overturned the decision and ordered a retrial.

During the court hearing in October, the judge also asked Lee to implement internal reforms to minimise problems that come from the family-run chaebol system.

Samsung’s latest measures are seen as its efforts to minimise the fallout in upcoming trials, according to the industry sources.

The fourth hearing of Lee’s retrial is scheduled on January 17.