Samsung Electronics compliance committee discusses strategy-making body

Samsung Electronics Vice Chairman Lee Jae-yong enters Seoul Central District Court in Seocho-dong, southern Seoul on Thursday. [NEWS1]

A Samsung Electronics compliance committee discussed the possibility of establishing a strategy-making body.

Lee Chan-hee, chairman of the compliance committee, said that the issue of forming the body at Samsung Electronics was brought up during a meeting between the head of the committee and Samsung Electronics Vice Chairman Lee Jae-yong on Wednesday.

“I am in favor of setting up the body, but the formation won’t be easy because there are some people even at the company opposing it,” he is quoted as saying by the Dong-A Ilbo.

The strategy-making body would report directly to Lee Jae-yong, but no details were available on how it would operate and how it would fit into the existing governance structure of the corporation.

A Future Strategy Office existed in the past but was disbanded in 2017 after it was used as communication channel with the Park Geun-hye administration.

It was staffed by about 200 people and led in devising of business strategies, the appointment of executives and mergers and acquisitions.

Critics argue that this sort of body can be used for underhanded dealings while proponents say that it could ensure efficiency in management.

The Compliance Committee noted that other topics discussed included ways to instill economic, social and governance values into corporate management.

Lee Chan-hee said that the committee did not discuss a future role on the board for Lee Jae-yong. He was a director until 2019.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]