Prof. Chang opposes drastic chaebol reform

University of Cambridge professor Chang Ha-joon expressed skepticism over politicians’ move to introduce strong regulations for big business groups under the buzzword of “economic democratization.”

In his lecture for chief executives of Samsung Group subsidiaries on Wednesday, Chang said that revamping the conglomerate sector is not a prerequisite for economic democratization.

Concerning calls in the market for conglomerates’ business diversification, he said, “If they had not widened the scope of businesses, Samsung might be selling only sugar or suit products.”

Rather than drastic chaebol reform, he said it would be better for society to reach a compromise on minimizing irregularities of big enterprises.

His remarks are drawing interest as Chang has been regarded as a progressive economist and an opponent of the Korea-U.S. Free Trade Agreement.

In Korea, the concentration of economic power with family-owned conglomerates, rather than financial capital, has reached the point where it could undermine other sectors.

Opposition party lawmakers say the situation is the regressive result of the Lee Myung-bak administration, arguing that it has been negligent in its oversight of big firms.

By Kim Yon-se (kys@heraldcorp.com)