Samsung’s internal monitoring committee fails to reach a conclusion on whether to pay membership dues to the Hankyung Federation, expressing doubts about purification of regulatory capture.

“Hankyeonghyeob needs to reflect on itself
Reassessing after examining whether it can sever the ties of vested interests”
Meeting between Samsung’s 7 affiliates’ CEOs and labor union
Intensive discussions on labor issues, The
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Lee Chan-hee, chairman of Samsung Compliance Monitoring Committee, attending the meeting between the Samsung Compliance Monitoring Committee and the CEOs of 7 Samsung affiliates at Samsung Electronics Seocho Building in Seoul on the morning of the 22nd. [Image Source=Yonhap News],
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, ‘On the morning of this day, after the regular meeting of the Compliance Monitoring Committee held at the Samsung Electronics Seocho Building in Seoul, Lee Chan-hee, the chairman of the committee, met with reporters and stated, “There were fundamental questions raised by the committee members regarding whether Hankyeonghyeob’s personnel reform truly cuts off the ties of vested interests” and “we did not reach a conclusion (on the membership fees).”,
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, ‘Previously, in April, Hankyeonghyeob requested 35 billion won in membership fees from the 4 major groups (Samsung, SK, Hyundai Motor, LG), and it is reported that each group, including Samsung, is currently considering the timing of membership fee payments.’,
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, “According to the ‘Hankyeonghyeob Membership Recommendation’ announced by the Compliance Monitoring Committee last August, Samsung, prior to paying the membership fees, must obtain prior approval from the committee. At that time, the committee also recommended that if Hankyeonghyeob misuses membership fees or donations for purposes other than their original intent, including vested interest acts, they should immediately withdraw.”,
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, ‘The chairman pointed out, “The reason why it changed from the Federation of Korean Industries (FKI) to Hankyeonghyeob was to cut off the ties of vested interests, but there are fundamental doubts about whether the ties of vested interests have been severed in terms of personnel and material composition.”‘,
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, ‘He added, “That is a matter that Hankyeonghyeob itself needs to review once” and said, “We will reexamine whether it is possible to sever the ties of vested interests systemically and discuss (Hankyeonghyeob’s membership fees) again.”‘,
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, ‘Last May, Hankyeonghyeob proposed an innovation plan focusing on establishing an ethical charter when it changed its name from FKI. At that time, Chairman Ryu Jin stated, “We will thoroughly cleanse the dark past and cut off any wrong ties” and “we will practice ethical management and establish a transparent corporate culture that will take root throughout the entire business community.”‘,
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, ‘Subsequently, in August last year, Chairman Lee Chan-hee stated during a temporary meeting of the Compliance Monitoring Committee discussing Samsung’s return to Hankyeonghyeob, “The issue is whether (Hankyeonghyeob) can definitely sever the ties of vested interests.”‘,
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, ‘While Samsung’s Compliance Monitoring Committee has not reached a conclusion on Hankyeonghyeob’s membership fee payment, attention is also focused on the decisions of other groups such as SK, Hyundai, and LG.’,
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New sign of Hankyeonghyeob [Image Source=Yonhap News],
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, ‘On this day, Chairman Lee Chan-hee and other committee members held a meeting with the CEOs of major affiliates including Samsung Electronics (Samsung C&T, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Life Insurance, Samsung Fire & Marine Insurance) at Samsung Electronics Seocho Building.’,
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, ‘At the meeting, they were expected to share the results of the Compliance Monitoring Committee meeting regarding Hankyeonghyeob’s membership fee payment and exchange opinions on labor relations.’,
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, ‘Before the meeting, the chairman met with reporters and said, “The labor issue is a mountain that Samsung must overcome without fail” and “we will review various issues related to Samsung’s law-abiding management, including labor issues, at the meeting.”‘,
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, ‘Since the beginning of this year, labor negotiations at Samsung Electronics have not resolved differences, and the National Samsung Electronics Labor Union (NSU) has initiated its first strike since the company’s founding. This strike by the labor union is the first in Samsung Electronics’ history. Both labor and management plan to resume wage negotiations on the 23rd.’,
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