South Korea’s Samsung group chief committee says that the leader faces legal proceedings over a bribery scandal. A news report from Thursday includes all disclosed information.
The issue involves the previous president Park Geun-Hye. It all happened because he appointed external authorities to a new oversight panel to stamp out illicit conduct.
Jay Y. Lee is a Samsung leader. Moreover, a move came after a judge who is directing Jay Y. Lee’s bribery case in October condemned the top conglomerate.
The critic came because of a lack of efficiency in its compliance system. It was declaring that one was necessary for averting the wrongdoing by its director and executives.
A former supreme court judge named to head the oversight and compliance committee, Kim Ji-Hyung, said that the timing Samsung chose to make those changes was not adequate. Thus, if the board fails, it will end up with huge shame.
Moreover, Ji-Hyung said that he initially turned down the offer of Samsung. He feared that it would end up collapsing for making improvements and only be utilized by Samsung to guarantee favorable court rulings.
He said, in a statement, that Samsung’s de facto leader, Lee has pledged to certify the panel’s autonomy at a meeting.
He also stated that comprising flagship Samsung Electronics, and it would scrutinize potential misbehavior at group companies.
However, the Samsung group has a program of compliance in place. The new panel will start to work in February.
These are mainly outside professionals from civic parties and legal circles.
Governance experts have broadcast skepticism, on the other side. To get lenient treatment in court, they have been calling the move a token.
Despite the guarantees to enhance transparency and governance, they cited a duplicate of criminal insults at Samsung and other family-run firms.
Lee Chang-min is a specialist in corporate governance at Seoul-based Hanyang University. He said that an effective compliance program might be operated within the environment. This would encourage employees to report violations without fearing reprisal internally.