Samsung Compliance Committee: Regional chip investment must avoid political sway

Lee Chan-hee, chairman of the Samsung Compliance Committee (CC), stated on June 16 that investments in regional semiconductor facilities should be carefully monitored to ensure they are not influenced by political considerations. He indicated that such investments, if they materialize, would become a subject of discussion for the CC.

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We will pay close attention to ensure that investments in regional semiconductor facilities are not swayed by political logic.

Samsung Electronics and SK Hynix are currently reviewing plans for regional investments, including potential semiconductor facility investments in the Honam region, as part of efforts to promote balanced regional development. The CC, as an external auditing body for the Samsung Group, intends to oversee these initiatives.

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If it actually leads to investment (in regions), it is expected to become a discussion item for the Compliance Committee.

Addressing the issue of performance-based pay for Samsung Electronics' unionized workers, Lee noted that while the CC had closely observed the matter for potential illegality, no specific problems have been identified thus far. He believes that Samsung's internal legal reviews were sufficiently conducted before the labor agreement was reached. Lee emphasized the risk of both denying and blindly accepting claims before a final legal judgment is made by the courts.

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We watched with interest whether there was illegality, but we have not yet found any specific problems regarding that part. We believe that sufficient legal review was conducted within Samsung before the (labor agreement).

Lee also advised that Samsung should be more mindful of public attention regarding its labor-management negotiations starting next year. His comments come as some common shareholders are pursuing legal action against the performance pay agreement, while the CC maintains a cautious stance on the matter.

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We believe it is dangerous to deny or blindly follow one's claims before the legal judgment on any factual relationship is finalized by the court.