Feb 24 β€’ 07:51 UTC πŸ‡°πŸ‡· Korea Hankyoreh (KR)

Samsung Compliance Committee Chairman: Lee Jae-Yong should return as registered director

Lee Jae-Yong, the chairman of Samsung Electronics, should return to his role as a registered director for responsible management, according to Lee Chan-Hee, chairman of Samsung's Compliance Committee.

Lee Chan-Hee, chairman of Samsung's Compliance Committee, reiterated that Lee Jae-Yong, chairman of Samsung Electronics, should return to the role of registered director to ensure accountable management. Speaking to reporters before a regular committee meeting, Lee expressed that having Lee Jae-Yong directly manage as a registered executive is desirable from the perspective of governance. Since Lee Jae-Yong stepped down from the registered director position in 2019 amid a corruption scandal, he has remained unregistered, which has raised concerns over his ability to make key decisions without bearing legal responsibilities.

The absence of Lee Jae-Yong as a registered director comes despite the Supreme Court clearing him of illegal succession charges last year. This situation has sparked criticism that he attempts to exercise crucial decision-making powers while evading legal responsibility. Among South Korea's major conglomerates, Samsung is the only group where the leader operates as an unregistered executive. The Compliance Committee has not formally decided on the return of Lee Jae-Yong's position, even though many members acknowledge its necessity, indicating that the committee may not be proactively addressing the governance issue at hand.

During the first meeting of the fourth committee, Lee Chan-Hee indicated that they would also seek solutions for the vertically integrated governance structure of Samsung, especially regarding the complex ownership involving Samsung Life Insurer acquiring shares in Samsung Electronics. This intricate governance structure raises significant questions about how operational responsibilities and legal accountability are distributed within the Samsung group, seeking alternatives to enhance corporate governance practices.

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