Samsung vows to strengthen compliance

[能田]

(The Korea Times Biz&Tech Thirsday March 18 2021)

Samsung vows to strengthen compliance

Samsung Electronics' Device Solutions (DS) Vice Chairman and CEO Kim Ki-nam speaks at the company's general shareholders' meeting held at the Suwon Convention Center, south of Seoul, Wednesday. / Courtesy of Samsung Electronics

Updated : 2021-03-18 09:13

By Kim Bo-eunSamsung Electronics reiterated its commitment to strengthening compliance with the law on Wednesday, while its chief Lee Jae-yong is in prison because of his involvement in a bribery case that resulted in the impeachment of former President Park Geun-hye.The remarks came during the tech giant's general shareholders' meeting held the same day."We will set up the foundation of a trusted company of 100 years," Device Solutions (DS) Vice Chairman and CEO Kim Ki-nam said at the meeting held in the Suwon Convention Center, south of Seoul.Shareholders affiliated with civic groups called for the board to strip the Samsung leader of his title given his convictions.Regarding the requests, Vice Chairman Kim said, "The group will comprehensively review the company's circumstances and law, taking into consideration the role Lee plays in managing Samsung's global network and making decisions regarding future businesses."Samsung also stated it will raise the amount of its dividend payouts over the next three years in an effort to boost shareholder value."We have scaled up annual dividend payments to 9.8 trillion won from this year through 2023," Kim told shareholders. "If residual funds exceed regular dividends, we plan to review partially returning this to shareholders, within 50 percent of free cash flow each year."This compares with the total of 28.9 trillion won in regular dividend payments made in the past three years. An additional 10.7 trillion won in residual funds is also set to be paid out as special dividends for 2020.Disputed outside members of Samsung Electronics' board were reappointed at the meeting.Seoul National University professor Park Byung-gook and Kiswe Mobile Executive Chairman Kim Jeong-hun were reappointed as board members and former Minister of Government Legislation Kim Sun-uk as a member of the audit committee.Earlier, global proxy adviser Institutional Shareholder Services (ISS) advised institutional investors against the reappointments. The agency is known to have stated that the board members failed in their duty of keeping Samsung's management in check, given they were appointed during the years Samsung chief Lee was probed and on trial for his alleged involvement in the Park administration-plotted corruption scandal, for which he was imprisoned. But the National Pension Service this week approved their reappointments.DS Vice Chairman Kim, Consumer Electronics President and CEO Kim Hyun-suk and IT and Mobile Communications President and CEO Koh Dong-jin were also reappointed as board members.Samsung also stated it will seek to enhance female representation at the executive level. The company currently has 61 female executives, accounting for 5.6 percent of the total.Despite demands for Lee to resign from his position as vice chairman, this year's shareholders' meeting ended with no major skirmishes. The rounds of applause usually heard at the annual meeting were unheard as shareholders at the meeting were presented digital devices with which they could cast their votes.Samsung said 900 shareholders gathered for the event, with others viewing the meeting online. Samsung for the first time broadcasted its shareholders' meeting online. It had introduced an online voting system last year.