Chairman Lee Chan-hee of Samsung Group’s Compliance Committee revealed on Dec. 19 that, if necessary, the committee plans to convey opinions or recommendations in response to a foreign hedge fund’s call for reforms in Samsung’s corporate governance structure.
Speaking to reporters before attending the regular December meeting at the Samsung Life Insurance building in the Seocho district of Seoul at 2 p.m., Chairman Lee stated, “We have not yet received any details about the matter.”
According to foreign media, the British hedge fund Palliser Capital recently demanded improvements in overall management at Samsung C&T, which functions as a holding company for Samsung. The demands included better utilization of cash assets, governance structure reforms, and enhanced communication between the board and shareholders.
Currently, Palliser Capital holds a 0.62% stake in Samsung C&T. Alongside Palliser Capital, there has been a growing voice from foreign funds demanding a more shareholder-friendly environment at Samsung.
Chairman Lee, who officially took office as the head of the committee’s second term in February 2022 for a two-year tenure, identified the improvement of Samsung’s governance structure as a key task of the committee. However, with only two months left in his term, a solution has yet to be presented.
In response to questions about the achievements of the committee over the past two years, Chairman Lee assessed, “Through the second term, the committee has established itself as an essential part of the company, and Samsung’s compliance-focused management culture has naturally become ingrained.”