A pedestrian passes by Samsung Electronics' building in Seoul in this Oct. 31 file photo. Yonhap

Samsung Electronics is working on preventing lax discipline among employees of its device solutions (DS) division in charge of semiconductor production, after the division suffered its worst-ever loss this year amid the chip industry's downturn, according to industry officials, Tuesday.

On Nov. 30, the division started asking its employees to inform the personnel affairs team of colleagues neglecting work duties.

"We would like you to disclose your name and team when reporting such cases," the team said in its notification. "We will not disclose your name to the person you referred."

The request was made several months after the team emailed employees in July, asking them to take precautions against committing sexual harassment, being neglectful of their duties or enjoying welfare benefits unfairly. In the email, the team introduced various cases and disciplinary measures. It was revealed that an employee exaggerated working hours, while another employee played mobile games on duty.

Samsung Electronics explained that its latest measure resulted from requests from young workers, who have complained about lax discipline among senior employees. However, concerns have emerged among employees that the measure could undermine Samsung's teamwork.

"This is the 'Oga Jaktong' law of 2023," a Samsung Electronics employee wrote on Blind, an anonymous chat app for verified employees. The law refers to a system of the Joseon Dynasty (1392-1910), which forced neighboring households to monitor each other's to discourage wrongdoings.

In addition, Samsung Electronics reportedly decided to become stricter about assessing the performance of employees, in an apparent attempt to freeze or reduce wages for those who perform poorly.

With the efforts to tighten discipline, the conglomerate finished an executive reshuffle and organizational restructuring this week. The company plans to convene top executives worldwide next week at the earliest to discuss business plans for the next year. They are expected to discuss ways to overcome the economic slowdown, given that the DS division's accumulated operating loss reached 12 trillion won ($9.1 billion) during the first three quarters of this year.