April 24, 2024

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[THE INVESTOR] The government plans to soon launch efforts to reform large family-owned conglomerates here, a ranking presidential official said on Oct. 31.

The government “will prevent the expedient control of conglomerates to prevent abuse by company heads and their families,” Jang Ha-sung, the presidential chief of staff for policy, said while meeting with foreign correspondents in Seoul.

The chief policy adviser to the president said the move was not aimed at limiting business activities by firms, but at ensuring fair competition among the companies.

“Fair competition and transparent management of companies based on a reform in the corporate ownership structure will become a driving force for the Korean economy to take a leap forward by revitalizing the local economy,” the 64-year-old said, according to a copy of his keynote remarks released by the presidential office Cheong Wa Dae.

Jang’s remarks marked the first time since the new Moon Jae-in administration took office in May that a ranking Cheong Wa Dae official stressed the need to change the way many large conglomerates operate.

Jang said the government’s reform efforts will also target the financial sector to ensure fair competition among lenders.

“The government seeks to enhance the risk-taking function of the capital market through a reform of the financial market that will help make sure the money will be funneled to innovative small and medium enterprises and startups,” he said.

By Alex Lee and newswires (alexlee@heraldcorp.com)