Lee Kun-hee

Conglomerate says still deciding disciplinary action after watchdog’s W400m fine


Samsung Electronics chairman Lee Kun-hee was reportedly enraged over its flagship electronics arm’s antitrust hindering, with Samsung Group announcing it will devise prevention measures involving the incident on Wednesday.

“I heard that the chairman was in fury over the incident. There was a strong reprimand,” said Rhee In-yong, chief of communications at Samsung Group, during a weekly briefing following the meeting of Samsung chief executives.

On Sunday, the country’s antitrust watchdog slapped the highest-ever fine on Samsung Electronics and two of its executives a combined 400 million won ($355,000) for hindering its investigation.

The Fair Trade Commission raided Samsung’s headquarters in Suwon in March as part of its investigation of local handset makers’ pricing policy. The entry of authorities, however, was delayed for some company officials subject to the probe needed the time to dispose related documents and replace their computers, according to the FTC.

In a related event, Samsung vice chairman Kim Soon-taek, who is also the head of its corporate strategy office, said during the meeting that hindering the government officials’ public duty was clearly a mistake, according to Rhee.

Samsung is currently in the process of deciding the severity of disciplinary action.

“Some must be wrongfully thinking that interfering with the investigation must be an act practiced for the company,” said Kim. “If so, that’s a bad move which is rooted on the wrong beliefs.”

He also said the group will not tolerate those who violate legal and ethical standards not depending on their positions, urging the chief of Samsung affiliates to make that clear for its executives and employees.

Samsung’s chief executives agreed that there were still wrong customs and beliefs that should be left behind and that this should become the opportunity to straighten that out, said Rhee.

“Practice is the most important of all,” said vice chairman Kim. “I hope this becomes a chance to understand that going by the principle will benefit the company in the long term.”

By Cho Ji-hyun (sharon@heraldcorp.com)