Samsung Supervisory Commission “Recommended Lee Jae-yong to restrict employment and avoid illegal activities”

Regarding the restriction on employment of Samsung Electronics Vice Chairman Lee Jae-yong, the Samsung Compliance Committee (hereinafter referred to as the vice-president) said, “We will recommend Samsung Electronics to avoid any illegal acts by complying with relevant laws and regulations in the process.”

On the 19th, the Jun-gaming Committee held a regular meeting at the Seocho Tower of Samsung Life Insurance in Seoul and made such a decision.

Earlier, the Ministry of Justice informed Vice Chairman Lee that he was subject to employment restrictions. According to Article 14 of the Aggravated Punishment Act for Specific Economic Crimes, if a person commits an offense such as embezzlement or malpractice of 500 million won or more, the execution of the imprisonment is terminated or from the date it is decided not to be executed, restricting employment to related companies for five years.

Earlier, the Solidarity for Economic Reform argued that “Vice-Chairman Lee is a person subject to employment restrictions, and the regulations apply from the date the prison sentence is confirmed,” and that “Samsung Electronics vice-chairman should immediately resign, and if not, the board of directors should make a decision.”

Accordingly, although the requirements and scope of employment restrictions are unclear, the Quasi-General has expressed its position that it must comply with the law in the process of proceeding.

In addition, the Quasi Control Committee received reports on internal transaction agendas of affiliates and received reports and reports and discussed ways to deal with them.

Regarding the suspicion of illegal support to the labor-management council, which the Samsung union delegation alleged last month, he requested continuous management to ensure that the labor-management council’s activities do not violate the law.

Won Sook-yeon, a professor at Ewha Womans University’s Department of Public Administration, was elected to the position of the committee that was vacant. Won served as a member of the Presidential Regulatory Reform Committee and served as an evaluation and advisory committee at the Supreme Prosecutors’ Office, Ministry of Finance, Education, and Justice.

An official from the Quasi-General said, “We expect to help the committee activities with new perspectives and suggestions for corporate compliance monitoring.”

Prior to the meeting, the Quasi-General Committee held a meeting with the Project Support Task Force (TF), the Financial Competitiveness Enhancement Task Force, and the Design, Procurement and Construction (EPC) Competitiveness Reinforcement TF heads. Samsung Electronics President Jeong Hyun-ho, Jung Hae-rin, vice president, Samsung C&T President Kim Myung-soo, and Park Jong-moon, vice president of Samsung Life, attended.

In relation to TF activities, the Quasi Control Committee emphasized securing transparency and preventing conflicts of interest, and participants agreed on the importance of preventing the risk of violating compliance obligations.