Lee Chanhee, Samsung Compliance Committee Chairman: "Semiconductor Investments Must Not Be Swayed by Political Logic"

Pressure on Samsung for Regional Semiconductor Investments:
"Company Sustainability and National Economy Come First"

On Labor-Management Performance Bonus Agreement:
"Only the First Peak Has Been Crossed"

Controversy Over 'n% Operating Profit Performance Bonus':
"No Particular Problem Found"

Lee Chanhee, Chairman of the Samsung Compliance Committee (hereinafter referred to as the Compliance Committee), has publicly addressed key and sensitive issues surrounding Samsung Group, such as recent political pressure regarding semiconductor investments in regional areas and controversies over the legality of performance bonuses. In particular, he made it clear that the Compliance Committee will rigorously fulfill its oversight role to ensure that corporate investment decisions are not swayed by political winds.

On the afternoon of the 16th, before attending the 4th regular meeting of the Compliance Committee held at the Samsung Life Seocho Building in Seocho-gu, Seoul, Chairman Lee met with reporters and spoke about the increasing calls, especially in the Honam and Chungcheong regions, for Samsung Electronics to invest in local semiconductor plants. He stated, "If the matter actually leads to an investment, as has always been the case, it will become a formal agenda item for the Compliance Committee."

Lee Chanhee, Chairman of the Samsung Compliance Committee (hereinafter referred to as the Compliance Committee), is seen answering questions from the press before attending the 4th regular meeting of the Compliance Committee held at Samsung Life Seocho Building in Seocho-gu, Seoul on the afternoon of the 16th. Photo by Joint Press Corps

He emphasized, "In that process, the most important considerations must be the company's sustainability and the impact on the national economy," adding, "The Compliance Committee will pay close attention to ensure that corporate investment decisions are not determined by political logic."

Regarding labor-management relations at Samsung Electronics—which have recently reached a dramatic conclusion but still leave lingering tensions, such as ongoing union conflicts—he suggested long-term communication as the solution.

Chairman Lee compared the establishment of labor-management relations to climbing a mountain, saying, "To reach the summit, you have to pass many peaks; this agreement is merely the first peak we have crossed." He continued, "For labor-management relations to be fully stabilized, more experience and close communication between both parties are needed. From next year's wage negotiations onward, the process should proceed with greater awareness and attention to the heightened interest and scrutiny of the public, who closely observed this year's negotiations."

He also addressed shareholders' dissatisfaction and controversies over legality regarding the practice of paying a certain percentage (n%) of operating profit as performance bonuses without approval from the general shareholders' meeting.

Chairman Lee stated, "The Compliance Committee has also paid close attention to the question of legality and has reviewed the legal aspects." However, he cautioned, "Until a final and conclusive court ruling is issued, it is dangerous to unconditionally deny or blindly accept either side's claim," while clarifying, "Based on what we have determined so far, there was sufficient prior legal review within Samsung before execution, and the Compliance Committee has not found any particular issue with the current method of performance bonus payment."

Regarding the issue of Rainbow Robotics, which is currently under broad investigation by the prosecution and financial authorities—including searches and seizures over alleged insider trading—he maintained a cautious stance.

Chairman Lee said, "The Compliance Committee has not yet paid special attention to or conducted a separate investigation into this matter," and promised, "If future investigations by judicial authorities reveal genuine legal problems and they fall under the Committee's jurisdiction, we will conduct a thorough review to ensure that no doubts remain."

This content was produced with the assistance of AI translation services.