Conservative heavyweight calls for control on chaebol

[THE INVESTOR] The ruling Saenuri Party on Monday called for strengthened supervision on conglomerates’ lax management and tax-evading power succession practices as part of a long-term vision to achieve social compromise and lessen inequality.

By prioritizing distribution over growth and advocating the rights of irregular workers, the conservative party gestured at expanding its political horizon to the centrist-reformist zone.

“A nation that is not just may not stand straight,” said floor leader Rep. Chung Jin-suk in a speech as the parliamentary negotiating unit representative.
 

His speech, “A greater Republic of Korea, built on social compromise,” largely focused on the need to achieve compromise in the labor market so as to lessen the widening economic inequality.

“So far, the Saenuri Party has focused on enlarging the pie, but the issue of distribution has slipped from its priority list,” the whip said.

Pointing out that the top 10 percent account for half of the nation’s total income, the Saenuri lawmaker claimed growing inequality will infringe upon Korea’s long-term future.

“We should raise the alarm on lax family-centered management practices of conglomerates,” he added, citing the example of unqualified junior management taking control through expedient power successions.

He thereby quoted the example of the feud-ridden Lotte Group, which has been stirred by a power struggle among founder Shin Kyuk-ho and his two sons Shin Dong-joo and Shin Dong-bin.

“Capitalism values ownership, but it doesn‘t mean that a (conglomerate) owner is entitled to cast all power to family members at will.”

The lawmaker also called for a “grand social compromise” in the labor market, citing the recent tragic death of a 19-year-old maintenance worker’s death at a Seoul subway station.

“Should the labor unions in conglomerates and public sectors continue to hold on to their vested rights, the youths and irregular workers will continue to suffer,” he said.

He thereby called for an in-depth investigation into Seoul Metro, the state-run subway operator in charge of supervising the maintenance company, as well as the financially struggling Daewoo Shipbuilding & Marine Engineering, which is looking to the government for restructuring funds.

Chung’s reformist remarks came in the wake of the party’s recent leadership feuds between those close to President Park Geun-hye and others calling for more fundamental reform.

At the center of the conflict was Rep. Yoo Seung-min, whose return was a matter of dispute between the two in-party groups. The former pro-Park party floor leader, after losing the favor of the Blue House over a disputed parliamentary bill, defected from the party to run in the April 13 general election as an independent candidate.

Last week’s decision to immediately reinstate Yoo rekindled the once-subdued factional divide, with floor leader Chung locking horns with pro-Park interim leader Kim Hee-ok. The two reached a dramatic breakthrough over the weekend, after which Kim ended his three-day boycott and resumed party affairs.

By Bae Hyun-jung (tellme@heraldcorp.com)