April 20, 2024

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Samsung Group’s compliance monitoring committee, led by former Justice Kim Ji-hyung, said Wednesday it has advised heir Lee Jae-yong and seven affiliates to issue a public apology for past wrongdoings concerning leadership succession plans.

The committee has sent a letter setting forth its recommendations to Vice Chairman Lee and the affiliates -- including Samsung Electronics, Samsung C&T and Samsung Life Insurance.

Regarding the questionable practices concerning the power transfer from Chairman Lee Kun-hee to his son, the committee said the heir apparent should apologize and promise not to repeat his ethical violations. 

Samsung Electronics Vice Chairman Lee Jae-yong(Ahn Hoon/The Investor)

“The committee’s view is that the past wrongdoings were associated with leadership inheritance at the group,” it said.

It also advised Samsung affiliates to reflect on their actions and apologize for failing to follow labor laws and recommended that Lee should himself declare that Samsung would no longer remain “labor union-free.”

Addressing criticism that the committee was created for the sake of Lee’s upcoming trial, the body said he and the affiliates should take all possible actions and make a public declaration so as to dispel any doubts that are lingering.

The committee requested replies from Lee and the companies within 30 days.

By Song Su-hyun/The Korea Herald (song@heraldcorp.com)