Samsung Compliance Committee “Vice-Chairman Lee Jae-yong recommends Samsung to avoid illegal acts of employment restrictions”

Input 2021.03.19 20:54 | Revision 2021.03.19 20:57

The Samsung Compliance Committee (Compliance Committee) announced on the 19th that it recommended Samsung Electronics to avoid any illegal acts regarding the restrictions on employment of Samsung Electronics Vice Chairman Lee Jae-yong, who is incarcerated for the Gukjeong Nongdan case.

On this day, the Compliance Committee held a regular meeting at Samsung Life Insurance’s Seocho Tower and announced that it had decided on such a policy.

The Compliance Committee said, “There are some unclear points in the requirements and scope of employment restrictions for Vice Chairman Lee.”

Under the current laws (Article 14 of the Specific Economic Crimes Weighted Penalty Act), if more than 500 million won is embezzled or abandoned, employment is restricted for five years from the date the execution of imprisonment ends or the date it is decided not to be executed.

However, as this law stipulates that the subject of employment restrictions is “when the execution of the sentence is terminated,” there has been a recent controversy over whether or not the person is subject to restriction of employment while the sentence is being executed.

On the 10th, the Solidarity for Economic Reform requested that the board of directors of Samsung Electronics decide to dismiss Lee, saying, “There is a problem with Lee’s starting management while he is executing his sentence.” Last month, the Ministry of Justice also informed Vice-Chairman Lee, who was imprisoned after being sentenced to two years and six months in prison at a repatriation trial for the destruction of the Gukjeong Nongdan, that he was subject to employment restrictions.

It is known that Samsung is in a position that the sentence is being executed, and that Vice-Chairman Lee is not subject to employment restrictions because he is an unregistered executive and does not receive compensation.

However, on that day, the Compliance Committee has not yet reached a conclusion as to whether he is subject to employment restrictions while Vice-Chairman Lee is currently in prison. It is known that this recommendation from the Compliance Committee is limited to the meaning of complying with the relevant laws in the process of reviewing such measures when Samsung Electronics goes through the follow-up procedures such as Vice Chairman Lee Jae-yong’s work permit application in the future.

Meanwhile, on that day, the Compliance Committee held a meeting from 9:30 am and held the meeting until 6:00 pm. This is known to be the record of the longest meeting in the history of the Compliance Committee.