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The Korea Herald
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THE INVESTOR
March 29, 2024

The Boardroom

S. Korean parties lock horns over summoning of chaebol

  • PUBLISHED :September 20, 2016 - 17:38
  • UPDATED :September 20, 2016 - 17:48
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[THE INVESTOR] Tension is building this week between rival parties over the forthcoming parliamentary audit, with the opposition camp vowing to summon heavyweight business figures and the ruling party calling for a ”more efficient process“ without excess witnesses.

At the peak of bipartisan strife is the National Policy Committee, which is to question conglomerates and top financial officials on unfair trade practices and market rigging.

The parliamentary committee on Monday named 15 additional witnesses for its Oct. 7 audit on the Fair Trade Commission. Of them, 13 were executive officials of major conglomerates or top government officials in the financial sector.

Hyundai Motor Group Chairman Chung Mong-koo(center). Hyundai Motor



On the list were former head of the state-run Korea Development Bank Hong Ky-ttack and incumbent CEO of the nation’s stock operator Korea Exchange Choi Kyung-soo. Chaebol figures included Korea Securities Finance Corp. CEO Jung Ji-won, Hyosung Vice Chairman Lee Sang-woon, Samsung Life Insurance Vice President Kim Nam-soo and others.

Opposition circles -- The Minjoo Party of Korea and runner-up People’s Party combined -- also tapped Samsung Electronics Vice Chairman Lee Jae-yong and Hyundai Motor Chairman Chung Mong-koo as key witnesses. The suggestion, however, has been opposed by the ruling Saenuri Party.

The opposition claims the Samsung heir’s presence is essential in order to clarify whether or not he expanded his corporate governance by having Samsung Foundation purchase stocks of the group’s effective holding company Samsung C&T.

“Such stock purchases are much alike the process in which group Chairman Lee Kun-hee succeeded corporate power from his father Lee Byung-chull in the past,” said Rep. Park Yong-jin, a Minjoo Party member of the National Policy Committee, calling for elucidation.

The conservative Saenuri Party, on the other hand, is raising its guard against the opposition’s aggressive witness calls, citing ineffective past practices in which an excessive number of witnesses were summoned during the audit period.

“Having business leaders as audit witnesses and disgracing them with no practical reason will only deteriorate the credibility of their company and also of the nation,” the party’s floor leader Rep. Chung Jin-suk said Tuesday, urging more precautions in summoning corporate figures.

Party chief policymaker Rep. Kim Gwang-lim pointed out that some 40 percent of the witnesses in the restructuring hearing earlier this month did not receive a single question throughout the hours-long process.

“The parliamentary audit is not an inspection of private firms and thus should not turn into a show-off,” Rep. Kim said.

Aware of public resentment against parliamentary inefficiency, the opposition also consented to the need to downscale the range of witnesses.

“(Opposition) lawmakers formed a consensus that the selection of witnesses should be kept to the minimum,” said the Minjoo Party‘s Vice Floor Leader Rep. Park Wan-joo.

This year‘s parliamentary audit is to kick off next Monday and run for three weeks until Oct. 15.

By Bae Hyun-jung/The Korea Herald (tellme@heraldcorp.com)

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