FTC calls for Samsung vice chairman to improve governance structure
FTC calls for Samsung vice chairman to improve governance structure
  • Jung Jun-ho
  • 승인 2019.05.22 11:53
  • 댓글 0
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Samsung Electronics Vice Chairman Lee Jae-yong (left) and Fair Trade Commission Chairman Kim Sang-jo

Fair Trade Commission Chairman Kim Sang-jo urged Samsung Electronics Vice Chairman Lee Jae-yong to show that Lee actively decides and is responsible for how to improve Samsung's governance structure and create new business models.

Kim appeared on KBS radio on May 20 and said he believes there will be a "strict investigation by the prosecution and a fair trial by the court" regarding the Samsung BioLogics issue, which is under investigation by the prosecution.

"We have a lot of regrets about Samsung as we watch Samsung BioLogics issue," Kim said. "Under such circumstances, Lee need to be more active in deciding how to improve the group's governance structure and create new businesses with future projects, and to show responsibility while explaining to the public."

"As we watched the civic movement for more than 20 years, a group that was buried only in legal risk management did not have good results, and if it stayed there, it would make it difficult for the group to survive," Kim said. 

"Only when the top decision maker decides and takes responsibility for its governance structure and business models, the group can overcome the difficulties," he said, adding that it is ultimately Lee's responsibility to create the new Samsung.

Meanwhile, the Seoul Central District Prosecutors' Office summoned Samsung BioLogics CEO Kim Tae-han and Samsung Electronics vice president in charge of the business support TF on May 19. 

The prosecution is reportedly checking Kim to see if there were any group-wide orders and involvement in the accounting fraud and systematic destruction of evidence at Samsung Biologics.

In November last year, financial authorities recommended the dismissal of Kim and imposed sanctions, including 8 billion won in fines, saying Samsung committed accounting fraud worth 4.5 trillion won when it changed its accounting in 2015.
 


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