Interview with the project support TF… The Compliance Committee emphasized “the risk of violation of compliance obligations should be avoided”
The Samsung Compliance Committee decided to recommend to Samsung Electronics to prevent any illegal acts related to the employment restrictions of Samsung Electronics Vice Chairman Lee Jae-yong, who was imprisoned in the case of Gukjeong Nongdan.
The Compliance Committee announced that it held a regular meeting at the Seocho Tower of Samsung Life Insurance on the same day and decided as such.
The Compliance Committee said, “There are uncertainties in the requirements and scope of employment restrictions for Vice Chairman Lee,” and said, “We plan to make recommendations to Samsung Electronics to prevent any illegal acts by complying with the relevant laws and regulations in the process of the related process.”
The Ministry of Justice informed Vice Chairman Lee, who was sentenced to two years and six months in prison at a repatriation trial for destruction of the Gukjeong Nongdan, that the Ministry of Justice was subject to employment restrictions.
Article 14 of the Aggravated Punishment Act for Certain Economic Crimes restricts employment for related companies for five years from the date when the execution of imprisonment ends or it is decided not to be executed if they commit an offense such as embezzlement or malpractice over 500 million won.
However, controversy is arising over whether or not the law applies to the case where the sentence is being executed, as the bill specifies the subject of employment restrictions as’when the execution of the sentence is terminated’.
On the 10th, the Solidarity for Economic Reform demanded that the board of directors of Samsung Electronics decide to dismiss him, saying that it is a problem for Vice Chairman Lee to manage prison while he is executing his sentence.
On the other hand, Samsung and Vice Chairman Lee are in the position that the sentence is being executed, and because Vice Chairman Lee is an unregistered executive and is not paid for, it is not subject to employment restrictions.
An official from the Compliance Committee said, “There is a controversy within the legal community as to whether Lee is subject to employment restrictions and, if applicable, from when to apply the employment restrictions.” “I didn’t come to a conclusion.”
It is not that the board of directors should be dismissed immediately or that Vice-Chairman Lee should resign himself.
He added, “In the future, Samsung Electronics may go through follow-up procedures, such as applying for a work permit from Vice Chairman Lee Jae-yong, which means complying with relevant laws and regulations in the process of reviewing such a plan.”
The Compliance Committee said it “has not been decided” as to whether there will be further discussions on the issue of Lee’s move.
On that day, the Compliance Committee started the meeting at 9:30 am, settled lunch in 10 minutes, and held a marathon meeting at close to 8:30 until 6 pm.
This is the record of the longest meeting of the Compliance Committee.
It is interpreted that there was a lot of trouble among the compliance committee members over the issue of restrictions on employment of Vice Chairman Lee.
At the beginning of the meeting, the Compliance Committee met and interviewed for about two hours with the project support TF (Task Force), the Financial Competitiveness Enhancement TF, and the EPC Competitiveness Enhancement TF director for about two hours.
The meeting, which was organized to prepare measures to respond to compliance risks and to communicate with each other, was attended by Hyun-ho Jeong, vice president of Business Support TF, Hae-rin Jeong, vice president of Samsung Electronics, Myung-soo Kim, president of Samsung C&T, and vice president of Samsung Life Insurance Park Jong-moon.
The Compliance Committee emphasized securing transparency and preventing conflicts of interest in relation to TF activities, and the participants agreed on the importance of preventing the risk of violation of compliance obligations in TF activities, the committee explained.
Regarding the’suspect of illegal support for the labor-management council,’ asserted by the Samsung union representative last month, the Compliance Committee told affiliates that “receiving reports of facts and improvement measures from the compliance officer of the affiliated company, and managing the activities of the labor-management council so that they do not violate the law.” Asked.
Seven affiliates of the Compliance Committee, including Samsung Electronics and Samsung SDI, announced that they have appointed Professor Won Sook-yeon of Ewha Womans University, as a new member of the Compliance Committee.
Prof. Sook-Yeon Won has served as a member of the Presidential Regulatory Reform Committee, the Supreme Prosecutors’ Office, the Ministry of Justice, and the Ministry of Personnel Innovation, and has served as a member of the evaluation and advisory committee, and is currently a member of the Supreme Court’s audit committee.
/yunhap news