Samsung Electronics Vice Chairman Lee Jae-yong is present at a hearing on the remand of the ruling court on the afternoon of the 18th at the Seoul High Court in Seocho-gu, Seoul. Reporter Woo Sang-jo
Samsung Electronics Vice Chairman Lee Jae-yong, who worked hard in the process of the Gukjeong Nongdan abandonment and repatriation trial, failed to show its strength at the sentence on the 18th. The judiciary decided that “the standard of effectiveness was not met.” On this day, Vice Chairman Lee was sentenced to two years and June in prison.
The Jungaming Committee was established in January last year as a measure to prevent the recurrence of the Gukjeong Nongdan incident. It is an organization that investigates and monitors the law violations of Samsung’s top executives, and has been regarded as a major variable in determining the sentencing of Vice Chairman Lee.
The reason Samsung Electronics created a separate committee in addition to the existing legal team was due to Lee’s reversal of revocation (rejecting the original judgment and returning the case to the lower court for trial). The Seoul High Court Criminal Division 1 (Deputy Judge Jung Joon-young) ordered the establishment of a’compliance monitoring system’ in May 2019.
The supervisory committee at Samsung Life Insurance’s Seocho Tower, Seocho-gu, Seoul, consists of Chairman Kim Ji-hyung and seven members. Chairman Kim was a former Supreme Court Justice and served as the chairman of the coordination committee for Samsung Electronics’ semiconductor leukemia. Following last October, Vice Chairman Lee visited the June 11th of this month and promised to “regularize interviews”. The committee said, “We delivered an opinion on the role of Vice-Chairman Lee in establishing Samsung’s compliance culture,” and said, “Vice-Chairman Lee also replied that he would guarantee continued activities of the committee in the future.”
In March last year, the Samsung Compliance Committee recommended apology to the public to Vice Chairman Lee Jae-yong, Samsung Electronics, and Samsung Electro-Mechanics. The photo shows the entrance to the Samsung office building in Seocho-dong, Seoul on the afternoon of March 11 last year. yunhap news.
Vice-Chairman Lee also apologized to the public in May last year following the recommendation of the Supervisory Commission. At this meeting, Vice Chairman Lee declared ▶Abandonment of succession to the age of 4 ▶Abolition of non-union management, etc., and apologized for past mistakes.
The external evaluation of the quasi-gaming committee was positive. At the Gukjeong Nongshim’s revocation court hearing held on December 7th last year, the court requested the opinion of a professional hearing committee evaluating the actual formation of the quasi-decision committee, and a positive evaluation came out.
Former Constitutional Judge Kang Il-won, a professional jury member, said at the time, “The Committee is an organization outside the company, and it is engaged in considerable compliance monitoring activities for the top management and the company.” There was also a result of apologizing for the past.
Another professional judge, attorney Kim Gyeong-su, said, “The juncture was established outside and focused on monitoring the top management. Even if the top management decides the illegal act, the representatives of the affiliates or executives and employees must carry out the execution. If the supervisory committee and compliance officers closely monitor the expenditure of external sponsorships, even if there is an illegal order from the head, it will be meticulously detected.
However, the judge’s judgment was different. The court judged that “the sincerity and efforts (by Vice Chairman Lee) to improve the effectiveness of the compliance system should be evaluated positively, but it is difficult for the new system to meet the criteria for effectiveness.” ▶There is no risk prevention and monitoring activity for possible new types of risks in the future. He stated the reason for the sentence, saying that there is no established surveillance system for violations occurring in companies other than the seven companies.
Vice Chairman Lee Jae-yong How did the bribery court judgment change? Graphic = Reporter Cha Junhong [email protected]
In response, KAIST Professor Byung-Tae Lee said, “It is a problem to give up the non-union management while presuming that the judiciary will reflect the activities of the Quasi-decision committee in the sentencing, and to wipe your mouth as if it was when it was now.” It is also unusual for judges to admonish management.”
Reporter Choi Hyun-joo [email protected]