Lee Chan-hee, chairman of Samsung's Compliance Committee, answers reporters' questions as he arrives for the committee's regular meeting at Samsung Life's Seocho Tower in Seocho-gu, Seoul, on Tuesday. [Yonhap]
Lee Chan-hee, chairman of Samsung's Compliance Committee, answers reporters' questions as he arrives for the committee's regular meeting at Samsung Life's Seocho Tower in Seocho-gu, Seoul, on Tuesday. [Yonhap]

Lee Chan-hee, chairman of Samsung's Compliance Committee, invoked Article 119 of the Constitution on Tuesday in response to the prolonged dispute over performance bonuses and political calls for chipmakers to share excess profits — noting that the article requires respect for the freedom and creativity of businesses.

Speaking to reporters before the committee's regular meeting at Samsung Life's Seocho Tower in Seocho-gu, Seoul, Lee said the ongoing labor-management disputes in the first half of the year and the rapidly shifting stock market conditions must all be handled "in accordance with the economic order principles set out in Article 119 of the Constitution."

Article 119, Paragraph 1 of the Constitution states: "The economic order of the Republic of Korea shall be based on a respect for the freedom and creative initiative of enterprises and individuals in economic affairs."

Although Samsung Electronics reached a performance bonus agreement between labor and management last month, tensions persist between the DS (semiconductor) and DX (finished-product) divisions. Employees in the DX division have staged protests dressed in black.

Political circles have raised calls for chipmakers to share their substantial profits with the nation and broader community. Views within the government are divided between those who argue the earnings should be reinvested for the future and those who say they should be distributed to workers.

Lee also commented on the recent volatility in Samsung Electronics' share price, which has swung sharply amid concerns about a semiconductor peak-out and the introduction of leveraged products.

"I don't trade shares, so I haven't really organized my thoughts on the roller-coaster situation," he said, adding that "both policy and corporate management must be conducted with the people in mind."

He then cited the classical Chinese adage "geogo sachu jimangye il" — meaning one should think of a fall when at the peak, and guard against excess when full — and stressed that "in the current situation, we must be humble before the people."

Lee also addressed Samsung Electronics' semiconductor investment plan announced late last month. The company plans to build two new semiconductor fabrication plants in the Honam region at a cost of 425 trillion won ($287 billion).

"If the investment plan is something the committee needs to review, the details will be shared before it goes on the board's agenda," Lee said. "Since the investment has not yet proceeded, it is not yet at the stage for review."

He added that if the investment moves forward, the committee would examine how it originated and whether the process falls within legal boundaries — but drew a line, saying "we do not involve ourselves in the company's business judgment."

Lee also reflected on completing the first half of the year since the fourth-term committee launched earlier this year. "There were so many issues in the first half," he said, adding that the committee plans to wrap them up properly and work toward building consensus on labor-management issues expected to continue into the second half.


jeongwan@heraldcorp.com